Representatives of NV5 Energy Efficiency Services presented a study to the Richmond County Administrative Services Committee on Feb. 21 that claims Augusta can cut its energy costs by nearly 50% if the city follows their recommendations.
NV5 recommends that the city convert to LED lightbulbs in all city run buildings, install comprehensive temperature control upgrades with improved connectivity and remote monitoring as well as major HVAC infrastructure upgrades such as replacement of chillers and heating units.
The study also recommends that a “solar power cell canopy” be erected over the Augusta Municipal Building parking lot and a ground-based solar panel grid installed at Diamond Lakes Library.
According to Aldo Mazzaferro, spokesman for NV5, the total up-front cost to the city for the upgrades is estimated at $25 million. However, Mazzaferro says the city will reap the benefits of having a 45% reduction in utility costs that translates to over $1.5 million in guaranteed savings per year.
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The study was based on the Guaranteed Energy Savings Performance Contract Amendment to the Georgia constitution that was approved by voters in 2010.
The initiative allows for municipalities, state government offices, school districts and universities to enter into “performance contracts” with private companies that will guarantee major cost savings over a 10-year period.
According to legislation passed in support of the amendment, energy service companies must provide an energy savings guarantee to the contracting city and allow for payments to be made by the service company to cover any cost savings shortfalls should that ever occur.
NV5’s study says that the city will also be able to use savings for future upgrades to the systems.
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Should the commission approve the contract, the Trane Company would be used as the vendor, but NV5 will also be contracted to oversee the project, as per state law. According to the contract, NV5 would provide in-house training to city employees and oversee the implementation of the new infrastructure.
According to Mazzaferro, NV5 will provide “measurement verification” after installations are complete as part of the guarantee agreement. NV5 will also be in charge of approving any construction cost overruns since the process will circumvent the normal Procurement Department process.
“The onus is on Trane to install these systems correctly so that buildings aren’t overheated or overchilled any longer, and they can’t just present the city with cost overruns like a larger chiller in a building. They have to go through us,” Mazzaferro said.
When it comes to the possibility of savings shortfalls, Mazzaferro says that his company will also be in charge of negotiating between the city and Trane as to whether the refund will be payable by check or in-kind service.
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District 6 Commissioner Ben Hasan asked for a list of buildings and facilities that would be affected by the contract prior to finalizing any plans.
“The reason I ask is that there is a conversation right now about selling some off or taking them offline,” Hasan said.
NV5 will submit a final recommendation letter prior to a special called, full commission meeting on Feb.28 when a final vote on the matter is expected.
The Feb. 28 deadline was set so that the city can guarantee the monetary figures in the proposed contract, but Hasan warns about jumping the gun and signing a premature contract simply to get a locked-in price up front.
“We need to look at this and make sure it meets the needs of the city; we can’t just rush in with that amount of money without knowing all the details,” Hasan said.
Scott Hudson is the senior reporter for The Augusta Press. Reach him at scott@theaugustapress.com
