Fort Walton Beach Council agenda — 02-09-2010 Regular — reading text

fulfilling other goals of the American Recovery and Reinvestment Act of 2009, including job creation. 1. 1. 2 All states, cities with a population of at least 35, 000, and counties with a population of at least 200,000 were automatically entitled to monies from this program through formula grants earlier this year. 1. 2 The City of Fort Walton Beach is eligible to receive funds from an $ 18. 6 million competitive sub -grant program from the State of Florida. The application is due February 12, 2010. If awarded, the City has twelve ( 12) months to expend ARRA funds. 2. DISCUSSION: 2. 1 This grant announcement presents an opportunity to implement an important component of the City' s adopted Economic Development Element of the Comprehensive Plan while realizing significant energy and cost savings. 3. FINANCIAL INFORMATION: 3. 1 The City is requesting $ 881, 100 in EECBG grant funds to retrofit street lights and gym lights with new LED lights and obtain the Florida Green Government designation. The City proposes to provide in -kind match contributions via project administration and labor to install the lights. The project administration will account for $ 88, 110, or 10 %, of the requested grant amount. The installation labor will account for $ 17, 480, or 2 %, of the requested grant amount. Gulf Power 35-  will also assist with the installation labor in -kind contribution. No cash match is required or proposed. 3. 1. 1 Street lighting for approximately 30 %, or $ 325, 000, of the City' s annual accounts electricity usage of $ 1, 200, 000 per fiscal year. If implemented, this project will save the City an estimated $ 28, 000 per year in energy and maintenance costs for the lifetime of the LED units, which is approximately 20 -30 years. This is ten times longer than the lifetime of traditional street lights. 3. 1. 2 Indoor gymnasium lighting at all three City recreational centers is also outdated and in need of replacement. Replacing the gymnasium lighting with more energy efficient lighting is expected to save approximately $ 10, 000 per year in electricity costs. 3. 1. 3 The City will contribute approximately 540 labor hours valued at approximately $ 6, 480, to install the new gymnasium lights and provide administrative time. 3. 1. 4 The total positive financial impact to the City for this project is a savings of approximately 38, 000 per year in operating costs. 4. RECOMMENDATION: 4. 1 Staff respectfully requests City Council authorization to transmit the grant application to the Florida Energy and Climate Commission for consideration. 5. SIGNATURE BLOCK: 5. 1 Submitted By: V4O- A Estelle Jones, flaAer II 5. 2 Reviewed and Concur: amantha D. Abell, Planning Manager 5 5. 3 Reviewed and Concur: Michael D. Beedie, P.E., City Engineer 5. 4 Reviewed and Concur: N 2 Br dy unker, Financial Services Director 5. 5 Reviewed for Agenda: bert T. Mearns, City Manager 36-  Al GRANT ASSISTANCE PURSUANT TO THE FLORIDA ENERGY EFFICIENCY & CONSERVATION SUBGRANTS A. PROJECT INFORMATION Title: Municipal Energy Efficient Street Light Retrofit Project Location: Fort Walton Beach, FL Are there multiple partners? If 1 2 Grant Application Category: so, state how marix, artners. D APPLICANT Contact Name: Stella Jones, Planner II Organization: City of Fort Walton Beach Address Line 1: P O Box 4009 Address Line 2: Fort Walton Beach State: FL Zip: 32549 City: Email: ejones @fwb.org Phone: ( 850) 833 -9697 Fax: ( 850) 833 -9926 PARTNERING ,.. Contact: Scotty Hutto Organization: Gulf Power Co. Address Line 1: 1 Energy Place Address Line 2: Pensacola State: FL Zip: 32520 City: Email: SMHUTTO @southernco.com Phone: 850) 444 -6020 1 Fax: 850) 444 -6237 Include additional partners as an addendum. REQUIRED REGISTRATION INFORMATION Legal Name of Lead Applicant: City of Fort Walton Beach FEID No: F596000323 DUNS No: 079455101 -0000 CCR Expiration Date: 03/ 03/2010 MFMP Status: Non -State Term Contract FUNDING REQUEST AND COST .- 1. Total Amount of Grant Funds Requested: $ 881, 100 105, 580 2. Total Matching Funds ( Provided by applicant and project partners): 3. Total Project Cost (Add amounts in 1 and 2): 986,680 4. Match Percentage ( Divide amount in 2 by amount in 3): 11% JOBS CREATED/ RETAINED 1. Total Short Term Jobs 3 2 2. Total Long Term Jobs 3. Total Jobs (Add the numbers from 1 and 2) 5 4. Total EECBG Funds Requested 881, 100 5. Jobs Divisor (Divided the amount in 4 by $ 92, 000) 9. 4 6. Job Score (Divide the number in 3 by the number in 5) 53 Please round to nearest whole number 37- Activity Million MWh Saved Thousand Cubic Gallons Source Btu Feet Natural Gasoline Saved Gas Saved Saved Street light retrofit 1, 023.69 3 MWh per million BTU n/ a n/ a year per year Gym light retrofit 276 million 081 MWh per n/ a n/ a BTU per year year Total Source Btu 1, 299.69 million BTU per year Saved millions Total Cost 38, 800 /yr Savings Include additional activities as an addendum. GREENHOUSE GAS REDUCTION Activity Metric Tons Carbon Reduced Street light retrofit 189 metric tons per year Gym light retrofit 5 1. 1 metric tons per year Total Carbon Reduced ( metric 240. 1 metric tons per year tons Include additional activities as an addendum. SPECIAL • DESIGNATION( S) Identify any Special Community Designation( s) and provide documentation for None any Special Community Designation claimed as an addendum. CERTIFYING OFFICIAL Certifying Official's Signature If signed by a person designated by the local governing body, a copy of the resolution must be included. Certifying Official' s Name (printed): Robert Mearns Title: City Manager Organization: City of Fort Walton Beach 38-  PROJECT NARRATIVE B. PROJECT 13ACKGROUND: The City of Fort Walton Beach desires to retrofit 1, 000 existing high pressure sodium street lights in the City with energy efficient LED fixtures and replace 90 inefficient lighting fixtures in three City gymnasiums with energy efficient T -5 fluorescent lamps. The City of Fort Walton Beach spends approximately 1, 200,000 in electricity energy costs with over % of this being spent on street lighting. Advances in solid state lighting in the past twenty years have resulted in new more energy efficient options for street lighting. LED fixtures have been shown to reduce energy usage by 50% and provide other benefits such as better quality lighting and reduced maintenance. The T -5 fluorescent lamps will reduce electricity consumption by about 40% over the current lighting technology in the gyms. In addition, the City would like to complete an energy efficiency and conservation strategy as well as accomplish certain tasks to obtain the Florida Green Local Government designation. Job creation will come primarily through manufacturers, but also retailers through increased marketing, training, and sales activity that is generated. Indirect and induce benefits are seen through economic multipliers as individuals and businesses have reduced utility bills. Lighting applications account for a large portion of energy usage therefore we can make the biggest impact on energy consumption by using more energy efficient lighting. Implementing this project will save 300, 000 kWh /yr for street lighting, 81, 000 kWh /yr for gymnasium lighting, and save the City $ 38,800/yr in lighting energy costs. Gulf Power Co. has been working with the City over the past year on the prospect of LED lighting fixtures and has recently developed an approved rate for an LED fixture that can be used by the City. Team Profile- Gulf Power Co.'s Lighting Manager is a certified Professional Engineer and will be responsible for organizing and executing the removal of old street lights and installing the new street lights. Gulf Power crews will perform the work and have been thoroughly trained in proper installation of street lights. City of Fort Walton Beach staff including the Environmental Specialist, City Engineer, and the Facilities Operations Manager will be primarily responsible for administering the project. The Environmental Specialist has experience with administering environmental grants. The City Engineer is a certified Professional Engineer that directs the City's Public Services and Utilities Departments and is responsible for the oversight of all city public works projects. The Operations Manager has been responsible for the City's street lights and other electrical /maintenance duties for 25