HomeMy WebLinkAbout2008/12/15 - ADMIN - Minutes - City Council - Study Session If! St. Louis Park OFFICIAL MINUTES
MINNESOTA CITY COUNCIL SPECIAL STUDY SESSION
ST. LOUIS PARK, MINNESOTA
DECEMBER 15, 2008
The meeting convened at 6:30 p.m.
Councilmembers present: Mayor Jeff Jacobs, John Basill, C. Paul Carver, Phil Finkelstein, Paul
Omodt, Loran Paprocki and Susan Sanger.
Councilmembers absent: None.
Staff present: City Manager (Mr. Harmening), Inspections Director (Mr. Hoffman), Office
Assistant (Ms. Songle) and Recording Secretary (Ms. Heintz).
Guests: Greg Ackerson and Nate Nygaard, McKinstry.
1. Energy Audit of City Facilities Preliminary Findings Presentation
Mr. Hoffman presented the staff report.
Mr. Ackerson and Mr. Nygaard described their company, McKinstry, and provided an overview of
the energy audit process, the recommended improvements for St. Louis Park, and the next steps.
Councilmember Paprocki inquired as to whether there is an energy consumption effect as staff
occupation changes are made among buildings and also asked for a definition of an energy project.
Mr. Ackerson stated that there is an impact and both short and long term advantages can be taken
with the heating/cooling load. He described the energy project process as quantifying the various
improvements and impacts, reviewing the City's budget, and determining how to leverage and invest
those dollars into facilities. Mr. Ackerson said McKinstry's main benefit to the City is the
company's guarantee of costs and savings (in units of energy), using local contractors to complete the
work, using its current budget amounts to repay capital costs for improvements within a specified
payback time.
Mr. Nygaard described the work synergy among cultural, operation, and capital changes, describing
proposed improvements, including the building automation system, dehumidification system,
building envelope, lighting, vending machine controls, computer shutdown program, water
efficiency, thermal solar application, active energy management, online tracking program, and
web-based information for community access.
Councilmember Paprocki requested further information about the cost analysis process. The
response was that the utility bills are analyzed and the company works with City staff to review,
refine, and finalize project scopes.
Councilmember Sanger asked how savings are evaluated sufficiently to justify implementation of
new capital costs. The response was that the ultimate justification is made by City staff and Council
criteria, but statute language designates up to a maximum 20-year payback of the package which
could be designed for a shorter payback period if desired.
Special Study Session Minutes -2- December 15, 2008
Councilmember Basill asked whether the company would guarantee savings and recommendations.
The response was affirmative, adding that McKinstry would perform the design, engineering and
contracting responsibilities to ensure the project meets the desired energy savings.
Next steps:
• December 2008 - proceed with project development agreement to perform detailed engineering
study agreement
• January through March 2009 - conduct detailed engineering study - review, refine, and finalize
project scopes with City staff- develop funding strategies
• April 2009 - present summary of engineering study to Council
Mr. Ackerson reiterated that usually the owner assumes all the risk in such a project but, utilizing
McKinstry, his company will take the risk for cost and performance.
Councilmember Finkelstein asked how McKinstry would make money on the project. Mr.
Ackerson said it would be through open fees (10% overhead and 8% profit), included in the
implementation portion of the process, and various funding mechanisms would be available to the
City. The current cost to the City is $24,500 for doing the audit alone, not going forward; and if
going forward, the audit costs would be wrapped into the overall project amount.
Councilmember Finkelstein asked whether there is interplay with the City's requirement to select a
lowest bidder for a project and the State statute exemption. Mr. Ackerson responded affirmatively
and described this project's criteria for an exemption status designation.
Councilmember Sanger stated that she wants to know the estimated life of the various City buildings
when the subject comes up for discussion in the future.
It was Council consensus that the project move forward.
Councilmember Sanger requested that, in addition to the website idea to share information,
knowledge be leveraged to help educate the community about what else they could learn for their
own buildings.
The meeting adjourned at 7:20 p.m.
Written Reports provided and documented for recording purposes only:
2. Update on Contract Extensions for Developm-nt of Vacant City Lots Located at 5609
Wood Lane and 2715 Monterey Avenue.;
\ Al
Nancy Stroth, eity Clerk Je► Jacobs, Mayor