HomeMy WebLinkAbout10292019 City Council Work Session Laydown - Schaefemeyer DH Project l 9 o Zq ,i✓S
Darryl Schaefermeyer
From: andybaker@yourcleanenergy.us ( 211P
65CAAAJP CCI-141/V"Iff4:)
Sent: Sunday, October 27, 2019 8:13 PM
_A1
To: darryljs@gci.net
Subject: Executive Summary - District Heat Project
Attachments: Oct 27 2019 Exec Sum - Seward DH Project.pdf
Darryl.
Please see attached PDF.
For $600K match, the City can get the Library, Annex, City Hall covered with 4 HPs + 10 double loop
boreholes + one loop down exist well.
It would cost an additional $195K to include the Fire Hall with 5 HPs + 12 double loop boreholes + single
loop down exist well.
Given the Citv's present budget shortfalls, I would think the 3 Bldg option is what would make the most
sense.
That would be 45% City financed and 65% AEA Grant funds to get it done.
The benefit to cost ratio is slightly higher if Fire Hall included but for less than $195K they could heavily
insulate the Fire Hall basement, and drive oil boiler waste heat up into truck bays.
Please let me know that you received this and what your thoughts are. I am going to submit the Design
Memo with this Summary to the City tomorrow.
Thank you,
Andy
1
EXECUTIVE SUMMARY-CITY OF SEWARD STARTER DISTRICT HEATING SYSTEM OPTIONS
50 Year Present Worth Financial Analysis: 3 Bldg Option: 4 Bldg Option:
Library/Annex/ Library/Annex/
City Hall City Hall/Fire Hall
10 Boreholes 13 Boreholes
Description Of Financial Component 4 CO2 Heat Pumps 5 CO2 Heat Pumps
Total Installed Project Cost Opinion -$1,322,820 -$1,517,849
Less AEA Grant Amount $725,000 $725,000
City Contribution To Project In 2020 -$597,820 -$792,849
Electricity use by source pumps-Year 1 -$3,250 -$3,950
Present worth of electricity use by
source pumps-over 50 year project life* -$162,500 -$197,500
Electricty use by heat pumps-Year 1 -$31,642 -$38,700
Present Worth of electricity use by
heat pumps-over 50 year project life* -$1,582,100 -$1,934,700
Maintenance Cost-District Heat System -Year 1 -$2,250 -$2,750
Present Worth of Maintenance Cost For
District Heat System -over 50 year project life** -$237,250 -$261,750
#1 Heating Oil Saved By Heat Pumps -Year 1 $54,204 $66,282
Present Worth of#1 Heating Oil Saved By
Heat Pumps -Over 50 year project life*** $4,598,084 $5,622,652
Net Present Worth Of Project Over 50 Years $1,293,414 $1,710,853
Net Annual Savings At End Of Year 1 $17,062 $20,882
Total Project Benefit To Cost Ratio 1.39 1.44
City Capital Contribution $/Annual MMBTU Heat Produced $434 $471
Notes:
* Grid electricity at LGS rate from City of Seward,with 3%per year escalation
** Maintenance labor costs escalating at 3%per year
"*Unit cost of#1 heating oil escalating at 5%per year
- Discount rate applied to all financial components is 3%per year
- Large General Service rate for City of Seward grid electricity at$.196/KWH
- Cost of#1 heating oil is estimated to be$3.99/gallon at start of project