03-09-2010 Council Work Session Minutes

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Orono City Council Committee of the Whole March 9, 2010, 6:30 p.m. Orono City Council Chambers Present: Mayor Jim White, Council Members Cynthia Bremer, Lili McMillan and Jim Murphy; Assistant City Administrator for Long-Term Strategy Mike Gaffron, Finance Director Ron Olson, Planning&Zoning Coordinator Melanie Curtis, Public Works Supervisor pon DeBaere, Building Official Lyle Oman and City Clerk Lin Vee 1. Geo-thermal Presentation • Oman introduced Jim Cusak, an Orono resident who has installed geo-thermal furnaces for 13 years, and Hollis Linehan, Executive Vice President of MEP Associates, a company that specializes in renewable energy. • Oman explained the city facilities are 17 years old with 17-18 furnaces. The natural gas heating and air conditioning systems are getting to the end of reasonable use. Staff has been looking at options for system upgrades, include geo-thermal systems. • Geo-thermal has been in use for many years and is recognized as one of the best heating and cooling solutions available today, especially for using renewable energy. • The city's existing system would make an excellent conversion to geo-thermal as it would be a cost- effective installation and operating system. • An electric base system is used for heating and cooling along with a loop field (pipes) outside. • Geo-thermal systems are generally about 30% more efficient. The real benefit is the way it works by providing carbon reduction. • Basically the system moves heat from inside the building and puts it in the ground in the summer; and in the winter the system takes heat from the ground and puts it back into the building. • The contractors propose to do a feasibility study to understand how a new system would affect the building and economic situation. They design a model building in a computer simulation, including lights, occupancy, walls, etc. and analyze the existing utility bills. The existing system is then replaced with a geo-thermal system to use as a basis for estimating the energy savings. • Average payback for a changeover is about 8 years. • There is an additional cost to install the pipe/loop field in ground, which has a life expectancy of 100 years. When inside equipment needs to be replaced, the loop field wouldn't have to be replaced. Geo- thermal equipment has been outlasting other types of systems for up to 30 years. The loop field would be about the size of the building and could be installed under parking lots or in any green space (preferable). Once the loop field is installed, pavement can be repeatedly laid over the top of the loop field. • The system uses electricity. Electricity prices fluctuate much less than natural gas. • The system is designed for ground temperatures at 20-25 below zero. Supplemental heat is generally not required. Council had some concern that a back-up system may be needed. • Fans move the air, similar to existing equipment. A freezer/refrigerator removes heat from the unit, it doesn't make the food cold. Geo-thermal operates in a similar fashion. • Grants and stimulus funds are available for public facilities, but there are many applicants. There are also some monies available as a tax credit; since the city doesn't pay taxes it would be available as a 10% gra nt. • The cost for a feasibility study is approximately$3000. Xcel Energy would reimburse 50%of the cost after approved. • The Public Works building doesn't lend itself to geo-thermal because it has radiant heat. The contractors have some other suggestions for the Public Works building. • Oman has scheduled an energy audit with Xcel Energy. • Rough estimate of cost: $25 per square foot for new systems. In the city, some ductwork exists that could be used. Contractor would need to do further analysis including the costs for the loop field installation. Page 1 of 5