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WS JCI Presentation OR �cm«ua axa Energy Savings Performance Contract (ESPC) Services Phase II Project — Wastewater & Lighting Improvements February 13, 2020 Johnson 010 Controls What is ESPC? Energy Savings Performance Contracts (ESPQ are a procurement vehicle that allows you to make improvements today and pay for those improvements over a term using the savings or revenue generated from the upgrades. It is called "performance contracting" because the results are guaranteed. z Phase I - AMI & Automatic Leak Detection Project Update Small & Intermediate Water Meters 100% Complete Large Commercial Water Meters 100% Complete Water Meter Retrofits 100% Complete Gas Meter Retrofits 100% Complete Automatic Leak Sensors 100% Complete AMI Commissioning 95% Complete - 3 Phase II - Investment Grade Audit Audit Summary • Analyzed 36 months of wastewater utility operating costs • Conducted site visits & performed field tests • Partnered with Molzen Corbin to conduct audit • Audit verified that there is a good opportunity to self- fund most of the recommended improvements • Conducted multiple workshops with LCU staff to review & agree upon the best solutions • Developed business case analysis to fund the project 4 Phase II - Investment Grade Audit Wastewater Plants Year Design Average Annual Plant guilt Capacity Flow Operating (MGD) (MGD) Costs Jacob Hands 1983 13.5 8.3 $477307000 East Mesa 2008 1 .0 0.5 $8407000 West Mesa 2000 0.4 0. 14 $1007000 5 Phase II - Investment Grade Audit SCADA • Las Cruces Utilities has a well organized SCADA system for the water supply and delivery facilities • The existing control systems for the three (3) wastewater treatment facilities are limited and some systems need to be upgraded • Wastewater utility needs new SCADA system to improve plant operation and provide wireless communication between the three(3) plants & Emergency Dispatch Center 6 Phase 11 — Investment Grade Audit Jacob Hands Plant40 4 .� . a • Partnered with Molzen Corbin & �f Dr. David Stensel (Univ. of R 7 � Washington) to develop BioWin process model of plant p • Model verified that plant is performing well but identified several improvement opportunities • Performed off-gas testing of existing aeration diffusers & lab results indicate diffusers are still performing well • Some outdated equipment needs to be replaced • Operation of two (2) 334 kW cogen units began in Jan 2019 & has already reduced plant operating costs 7 Phase 11 — Investment Grade Audit East Mesa Plant E 15.• Plantequipment & controls are in good operating condition � , g p g _.._.... • North & South Fork Lift Stations Efr 1 supply flow to the plant - • Plant & two lift stations do not operate as a single coordinated unit resulting in continuous start/stop flow to the plant and increased operating costs • Solar PV system is performing well & has reduced electric cost about 50% Phase 11 — Investment Grade Audit West Mesa Plant . ` Y : yry I4 t AM • The four 4 125-H P aeration ` blowers serving the plant are over 30 years old & were 1d relocated from the Jacob Hands . plant 11 years ago Q® • Based on current flows, only one blower is needed to provide airflow requirements (3 standby blowers) • Due to low flows & operating costs, there are no improvement opportunities at this plant resulting in good financial paybacks 9 Phase 11 — Investment Grade Audit Wastewater / Reclaim Water Meters — Accuracy Test Results Meter # Type Meter Size Existing Accuracy #1 Reclaim 4" 100 % #2 WW 1 .5" 100 % #3 WW Flume 100 % #4 WW Flume 88 % #5 WW Flume 100 % #6 Reclaim 8" 100 % #7 Reclaim 6" 77 % #8 Reclaim 4" 67 % #9 Reclaim 3" 73 % #10 Reclaim 4" 63 % 10 Phase II - Recommended Improvements Wastewater SCADA System • New SCADA system will improve operation of each wastewater plant & provide wireless communication between the three plants & Emergency Dispatch Center • Reduced operating costs & continuous monitoring of critical operating parameters Workstation Workstation Workstation East Server Backup/ Server Router/ West Mesa Radio Radio A Restore B Modem Radio >Mesa Plant A B Server C Plant Utility< > City Bldg Network PLC P!C PLC Jacob Hands Plant 11 Phase II - Recommended Improvements Jacob Hands Plant - Aeration Improvements • Replace four (4) natural gas engine driven aeration blowers with three (3) new efficient electricAll = blowers. (existingblowers are over o 20 years old and have exceeded their useful lives) -- • New aeration basin controls • Two (2) new Return Activated f,REREE4 Sludge (RAS) telescoping valves • Substantial operating cost savings . 12 Phase II - Recommended Improvements Jacob Hands Plant — Primary Sludge Pumping Improvements • Replace existing sludge grinders & pumps with new more efficient equipment • Modify piping for improved operation • Substantial flow improvements & reduced operating costs Twin Shaft Grinder Progressive Cavity Pump N.M-'1501 f r iP 13 Phase II - Recommended Improvements Jacob Hands Plant — Cogeneration Plant Improvements • JCI assisted LCU staff in negotiations with El Paso Electric to implement an interconnection agreement at the plant _ (includes net metering & plant will r --- - remain on low cost power rate) !_ Co en plant softwareprogramming = --�,. Connect some existing equipment to both electrical loops Improvements will allow plant to operate both cogen units at full output capacity resulting in a substantial increase of renewable energy production & reduced operating costs 14 Phase II - Recommended Improvements East Mesa Plant — Wastewater Flow Improvements • Piping upgrades at North Fork Lift Station to eliminate flow FLOW RESTRICTION AT :E• """ DIVERSION MANHOLE restrictions TION NORTH FORK • Re-program controls at plant & LORTH FORK both lift stations to allow the system to operate as a single coordinated unit .....•••• ......•••• L• • Reduced operating costs & N EAST MESA PLANT extended life of equipment >' SOUTH FORK LIFT STATION TO JACOB HANDS PLANT 15 Phase II - Recommended Improvements Wastewater / Reclaim Water Meter Upgrades • Meter upgrades for nineteen (19) wastewater & reclaim water customers • Connect meters to Itron AMI system • Eliminate manual reads • Replace all customer-owned meters with city-owned meters ip • Increased revenues 16 Phase II - Recommended Improvements Lighting Improvements Retrofit interior and exterior lighting with new LED Lighting Three (3) wastewater plants Utilities administration facility Upper Griggs tank Spruce tank Phase II - Recommended Improvements HVAC Upgrades & Energy Management System (EMS) • Four (4) new HVAC units at . Administration Building • New EMS at Administration Building & Water Quality Lab Reduced operating costs k. k 18 Phase II - Recommended Improvements EPE Accounts — Rate Conversion • Switch several Las Cruces Utilities electric accounts from current commercial rate to more favorable municipal rate El Paso Electric 19 Phase II - Project Cost Summary ECM # Site Scope of Work Cost SDA All Wastewater SCADA System $174567710 JHP-1 Jacob Hands Aeration Improvements $374067662 JHP-2 Jacob Hands Primary Sludge Pumping Improvements $4367076 JHP-3 Jacob Hands Cogeneration Plant Improvements $4817998 EMP-1 East Mesa Wastewater Flow Improvements $3087825 WWM-1 All Wastewater/ Reclaim Water Meter Upgrades $2587669 LTG-1 All Lighting Improvements $2187168 AC-1 Admin HVAC Upgrades $507792 EMS-1 Admin, Lab Energy Management System (EMS) $747700 EPE-1 All EPE Accounts - Rate Conversion $0 Contingency Allowance $1007000 Investment Grade Audit $3877600 Final Engineering $2687653 Construction Management & Training $9797271 Construction M&V $327300 Warranty $567345 Performance & Payment Bond $457220 Subtotals $875617988 EMNRD Fee (1% ) $857620 GIRT Tax (8.3125%) $7187832 Total Cost $973667440 20 Phase II - Project Cost & Savings Annual Annual Annual Annual Total Cost Electric Gas Meter O&M Annual Cost Cost Accuracy Cost Project Savings Savings Benefits Savings Benefits $993669440 $3009566 $259547 $209030 $1979305 $5439448 Simple Payback - 17.2 Years 21 Phase II - Project Funding Project Cost $993669440 LCU Cash Contribution ($0) Financed Amount $993669440 Finance Term - Years 20 Construction Term - Months 12 Estimated Interest Rate 3.5% 22 Phase II - New Equipment Expected Life New Equipment Expected Life Wastewater SCADA System 20 - 25 Years Aeration Blowers 20 Years Return Activated Sludge Telescoping Valves 25 Years Primary Sludge Grinders & Pumps 20 Years EPE Interconnection Equipment 20 - 25 Years North Fork Lift Station Piping Upgrades 40 Years Wastewater / Reclaim Water Meters 20 Years LED Light Fixtures 20 - 25 Years HVAC Units 20 Years Energy Management System 20 - 25 Years 23 Phase II - Reduced Carbon Footprint The project's annual reduced emissions would be equivalent to: CO2 sequestered by 42,509 tree seedlings grown for 10 years in an urban scenario CO2 sequestered by 3,358 acres of pine or fir forests in one year CO2 emissions from 546 passenger vehicles driven for one year ZWO% CO2 emissions from 5,952 barrels of oil consumed in one year CO2 emissions from the energy use of 2J7 homes for one year CO2 emissions from burning 14 coal railcars for one year 00 24