09/07/2010 Council Packet - Laserfiche WebLink

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C I T Y *y" :; O F IIN / KES WORK SESSION STAFF REPORT Work Session Item 1 Date: Council Work Session, September 7, 2010 To: Mayor Reinert and City Council Members From: Rick DeGardner, Public Services Director Re: Office of Energy Security Grant Award BACKGROUND: The City of Lino Lakes was recently notified that our grant application for energy improvements was selected for funding by the MN Office of Energy Security. The grant award is in the amount of $89,937 and requires a 50% match. Our grant application consisted of three primary components: Civic Complex — Budget considerations during the original construction of the Civic Complex resulted in a high efficiency boiler not being installed (only two standard efficiency boilers). Installing a high efficiency boiler would achieve energy savings during 80 -90% of the heating season. Installation of one new high efficient (94.6 %) boiler for main building heating loads /operations and utilizing the existing 78% efficient boilers for peak demand time only would result in approximately $7,800 in annual energy savings. Total project cost $79,900 (grant award is $39,950, also $3,500 in rebates). City responsibility is $36,450 with a payback term of 4.7 years. Public Works /Senior Center — The current mechanical systems have reached their average life expectancy. The heating and air conditioning systems are 27 -30 years old and have efficiencies in the 68% range. Installing six new high efficient furnaces will result in 95% efficient ratings, increasing a minimum of 25% plus thermal transfer efficiencies. Cooling equipment will be increased from 8 seer to 15 seer ratings. Total project cost $60,938 (grant award of is $30,469, also $3,480 in rebates). City responsibility is $26,989 with a payback term of 9.2 years. Annual energy savings is $2,925. Centennial Fire Station #2 — The current mechanical systems are approximately 19 years old and have efficiencies in the 70% range. Installing new heating equipment will provide 95% efficient ratings, increasing a minimum of 25% plus thermal transfer efficiencies. Cooling equipment will be increased from 8 seer to 15 seer ratings. Total