Memorandum 19-007 LED Lighting Upgrade - 6 City Buildings

Memorandum 19-007

TO:                        Katie Koester, City Manager

FROM:                 Carey S. Meyer, Public Works Director            

DATE:                   January 8, 2019

SUBJECT:          LED lighting Upgrade – 6 City Buildings Using Revolving Energy Loan Fund

The City Council authorized the completion of a lighting energy audit on six City buildings (City Hall, Animal Shelter, Airport Terminal, Library, Harbormaster Building, and Public Works). The Energy Conservation Plans were completed (see attached City Hall audit as an example) and the costs and benefits of upgrading the lighting at each facility have been determined and are summarized below:

                                          Material                Labor             Total        Payback Period    Annual
                                           Cost                       Cost                Cost              (Simple)             Savings

City Hall                             $  4,286             $  5,259         $   9,545          4.9 years            $   1,959     

Animal Shelter                 $  1,195             $     707          $   2,802          2.8 years            $   1,195

Airport Terminal             $19,447             $  4,740         $ 23,287         3.4 years            $   6,807

Library                              $  8,627             $10,165         $ 18,792         2.7 years            $   7,076

Public Works                   $  5,804             $  4,923         $ 10,727         2.1 years            $   5,070

Harbormasters Office    $  2,090             $  1,932         $   4,022          2.2 years             $   1,846

        Totals                           $41,449             $27,726        $ 69,175                                      $ 23,953

Public Works proposes to utilize the Revolving Energy Loan Fund to finance the lighting upgrades at these facilities. The Fund was created by the City Council in 2010 to funds energy conservation projects, with departments repaying the loan over time to allow the fund to finance future projects. The operating budget associated with each facility will reimburse the Revolving Energy Loan Fund in three equal payments (2020, 2021, and 2022).

Labor to install would be completed by either building maintenance staff, a new temporary employee, or by contractor (as time allows, in the most cost effective manner). All work would be completed in 2019.

Recommendation: The City Council authorize the use of the Revolving Energy Loan Fund to finance the proposed City Building Lighting Upgrade project as described above, and authorize expenditures from the 2020, 2021, and 2022 City Operating Budget to reimburse the Fund for the cost of completing the project which will reduce energy costs and carbon emissions.