NEWFIELD GARDEN APARTMENTS PHASE 1
NEWFIELD GARDEN APARTMENTS
PHASE 1 Multifamily Performance Program Feasibility Study
FOR
TWO PLUS FOUR CONSTRUCTION CO, INC. E. Syracuse, NY
September 30, 2008.
Woodcock and Armani, a Comfort Systems USA Company Prepared by:
Energy Services
Comfort Systems USA Energy Services 50 Baker Hollow Road Windsor, CT 06095 860‐687‐0709
Energy Services September 30, 2008 Barb Lamphere Two Plus Four Construction Co, Inc. 6320 Fly Road E. Syracuse, NY 13057 Re: New York State Energy Research and Development Multifamily Performance Program Proposal for Newfield Garden Apartments, Newfield, New York. Dear Barb, We have conducted an analysis of the proposed retrofit at Newfield Garden Apartments for availability of incentive dollars through the NYSERDA Multifamily Performance Program. This proposal is a fixed price proposal for our assistance in complying with the requirements of the program and procuring the highest possible financial incentive for your project. This document is comprised of 6 sections as follows: Section Number Subject 1. Executive Summary 2. Program Explanation 3. Energy Evaluation 4. Summary of Incentives 5. Proposal Documents 6. Appendix: If you have any questions please call or e‐mail me. Sincerely, Albert LaValley Project Engineer Comfort Systems USA Energy Services 50 Baker Hollow Road Suite A Windsor, CT 06095. Cc: Bob Kurzon
Phone: (860) 687‐0709 Cell: (860) 595‐9907 Fax: (860) 687‐1762 Email: [email protected]
1. Executive Summary To assist the Two Plus Four Construction Co, Inc. in your efforts to evaluate the renovation project at Newfield Garden Apartments, Comfort Systems USA Energy Services surveyed the property located in Newfield, New York on Friday September 5, 2008. This report and recommendations are a result of that survey. The Newfield Garden Apartments Project is located in Newfield, New York, on Route 17. The property is comprised of one building, containing 28 apartment units. There are 28 – one bedroom apartments, an office, two laundry rooms and a large common area. Our evaluation concentrated on the proposed renovation project, which includes the conversion from electric to natural gas heat in the apartments. In the Multifamily Performance Program, incentives are based on achieving a 20% source energy use reduction, with incremental incentives given for exceeding that goal. The term source energy use refers to the amount of energy used at the power plant, natural gas distribution center, or oil refinery to make the energy that is eventually used in the apartment complex. There are very little losses between source and site for fuels such as natural gas and oil, however electricity loses 60% or more of its energy in transmission between source and site. This large difference places a premium on electrical energy savings which is highly beneficial to any project switching building systems from electricity to natural gas or propane. In order to establish the estimated incentives available for the proposed scope of this project, we determined the existing energy load profile in the apartment complex for the previous year and then estimated the energy that would be consumed in the year following completion of renovations. Table 1 shows a summary of the estimated pre Table 1: Summary of Pre/Post Retrofit Energy Use and post retrofit energy use. The project will reduce the electric load by 26.1%. With the added gas load, we estimate a source energy use reduction of 20%, which does not exceed the program goal, meaning the project does not qualifying this project for additional incentives. Summary of Total Incentives and Savings: Based on our estimates, we believe this project is eligible for $48,400.00 in incentives through the Multifamily Performance Program. We propose to partner with you to secure these funds for a fee of $23,900.00 (Twenty Three Thousand Nine Hundred), which would result in a net rebate of $24,500.00. We will line up our invoicing to coincide with your incentive payments which will result in a positive cash flow for you. There is also the possibility of additional incentives available through advanced measures and financing at a reduced interest rate through the New York State Energy Smart Loan Fund. We will also advise you on these alternate sources of funds.
Newfield Garden Apartments Phase I Report September 30, 2008
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Milestones: A summary of incentive milestones is shown in Table 2, with an estimate of timetable of when you will receive them. Table 2: Incentive Milestones
Newfield Garden Apartments Phase I Report September 30, 2008
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2. Program Explanation The New York State Energy Research and Development Authority (NYSERDA) Multi‐family Performance Program (MFPP) is a state wide utility incentive program designed to provide financial assistance and incentives to help owners and developers increase energy efficiency in multifamily housing. This program combines several previous programs providing assistance in the multifamily market and officially began in May of 2007. Unlike previous programs which provided financial assistance for residential audits or specific individual energy efficiency measures, the Multifamily Performance Program is designed to provide assistance during the entire project. The program’s goal is to achieve a minimum 20% source energy use reduction. The Multifamily Performance Program serves both retrofits to existing buildings and new construction, low income and market rate housing. For the existing building portion of the program the only requirement is that each building has 5 or more units. The incentives are paid out in four installments over the course of the project and the amount for each differs depending on the units being either market rate or low income housing. Additionally, each building is benchmarked against similar buildings at the beginning of the project, to determine the current efficiency level of the units. The benchmarking determines the amount of the final incentive, with the poorest performing buildings receiving the largest incentives for achieving their performance goals. Table 1 details the incentive amounts and when each is paid out. Table 3: Existing Building Incentives
Newfield Garden Apartments Phase I Report September 30, 2008
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3. Energy Evaluation The Multifamily Performance Program’s primary goal is to achieve a 20% reduction in the source energy use at the site. To establish if the proposed scope will meet this goal, we first evaluate yearly average building energy use for the two years prior to the retrofit and compare it with the projected building energy use in the year after the retrofit. The purpose of this Energy Evaluation is to: 1. Establish the amount of energy the complex has used over the past two years. 2. Estimate the amount of energy the building will use in a sample year when the proposed retrofit is complete. 3. Use the information calculated in the steps 1 and 2 to benchmark Newfield Garden Apartments and determine the amount of incentives the proposed retrofit may be eligible for under the Multifamily Performance Program. The first step in this process was to gather and compile all the energy bills for the previous two years. In some cases previous tenants had moved out of the property, and their utility data was not available. In those situations, we applied the average use for that size apartment. Figure 3 shows the data, broken down by energy and space type. The yearly electricity use was 107,905 kWh in the apartments and 51,540 kWh in the common areas. The average yearly natural gas use (including propone) was 3,314 Therms. Figure 1: Average Yearly Energy Use
Newfield Garden Apartments Phase I Report September 30, 2008
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A load profile is created by measuring or estimating individual loads within the complex, to determine how their total electric load is made up. Most utilities do not read each customers meter each month; rather they estimate usage for 1‐2 months in between actual measurements. In order to get a more accurate view of the actual month to month electrical load we have taken the three month moving average of the monthly totals. A graph of this data is included in Figure 2. Using the monthly usage numbers shown in Figure 2, we are able to generate a full electric load profile. The graph of this load profile is shown in Figure 3. More detail, including a table version of Figure 3 and explanation of calculations can be found in Appendix A: Load Calculations.
Figure 3: Estimated Existing Electric Load Profile
Figure 2: Load Profile by Energy Type
To predict the post retrofit load profile, we assumed site energy use for each group would remain constant except in the case of specifically stated efficiency upgrades. Also, heating, and common area dryers would be switching from electric to natural gas. Figure 4 details the total energy use by fuel type for both the pre‐retrofit and post‐retrofit situations. The information shown at the right is the key information needed to project the potential benchmarking score of the building both before and after the retrofit. The benchmarking report is included in Section IV: Summary of Incentives. Newfield Garden Apartments Phase I Report September 30, 2008
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Table 4: Load Profile by Energy Type
Newfield Garden Apartments Phase I Report September 30, 2008
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4. Summary of Economics Table 4 summarizes the incentives we believe are available through the New York State Energy Research and Development Authority’s Multifamily Performance Program for the proposed scope. There is also the possibility of additional incentives available through advanced measures and financing at a reduced interest rate through the New York State Energy Smart Loan Fund, which we will investigate during the preparation of the Energy Reduction Plan. Table 5: Program Benchmarking Summary
Table 5 details the estimated total building energy expenses for the pre and post retrofit case, at current utility rates. Table 6 shows energy and cost savings by Energy Conservation Measure and Table 7 shows project milestones, expected completion dates and incentive amounts.
Newfield Garden Apartments Phase I Report September 30, 2008
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Table 6: Estimated Yearly Utility Costs
Table 7: Energy Conservation Measure Savings
Newfield Garden Apartments Phase I Report September 30, 2008
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5. Proposal Documents SCOPE OF WORK: Comfort Systems USA Energy Services proposes to act as the Multifamily Performance Partner to Two Plus Four Construction Co, Inc. for its Newfield Garden Apartments renovation project. As the Multifamily Performance Partner we will be responsible to comply with all Multifamily Performance Program requirements including: completing program application, conducting a Full Energy Audit of the Newfield Garden Apartments and completing associated Energy Reduction Plan, completing all applications to receive incentive payments #1‐4, and completing review and re‐benchmarking process within 18 months of project completion (necessary to secure incentive #4). We propose to provide these services in a six step process. 1. We will assist you in filling out and submitting the initial application for the Multifamily Performance Program. 2. Once NYSERDA has approved the initial application, we will conduct an onsite Energy Audit and begin compiling the Energy Reduction Plan. It will be our responsibility to submit the completed plan to NYSERDA, along with the application for Incentive #1. 3. Once NYSERDA has approved the Energy Reduction Plan, you will be free to begin construction of the project. We will monitor the construction process to identify the appropriate steps to achieve the expected energy efficiency. 4. At 50% Construction Completion, we will submit the request for Incentive Payment #2, along with all supporting documentation. 5. At Substantial Construction Completion, we will submit the request for Incentive Payment #3, along with all supporting documentation. 6. 12‐18 Months after construction completion, we will re‐benchmark the building and submit the request for Incentive Payment #4, along with all supporting documentation. SCHEDULE: We propose to begin work for this project within ten (10) days of our receipt of two signed copies of our professional services agreement (available on request). Since we will be working with the design team throughout the construction process, we do not anticipate this program having any impact on project schedule as we understand it. FEES: We propose to provide the services described for a fee of Twenty Three Thousand Nine Hundred ($23,900.00). Please indicate your acceptance of our offer by signing and returning two copies of our professional services agreement. We look forward to working with you and the rest of your team on this project and other projects in the future.
Newfield Garden Apartments Phase I Report September 30, 2008
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Appendix A: Load Calculations
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Appendix B: Initial Benchmarking Report
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Newfield Garden Apartments Phase I Report September 30, 2008
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Newfield Garden Apartments Phase I Report September 30, 2008
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Appendix C: Utility Bill Summary
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Newfield Garden Apartments Phase I Report September 30, 2008
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APPENDIX D: Summary of Pre/Post Retrofit Energy Use, Cost and Environmental Impact
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Newfield Garden Apartments Phase I Report September 30, 2008
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PHASE 1 Multifamily Performance Program Feasibility Study
FOR
TWO PLUS FOUR CONSTRUCTION CO, INC. E. Syracuse, NY
September 30, 2008.
Woodcock and Armani, a Comfort Systems USA Company Prepared by:
Energy Services
Comfort Systems USA Energy Services 50 Baker Hollow Road Windsor, CT 06095 860‐687‐0709
Energy Services September 30, 2008 Barb Lamphere Two Plus Four Construction Co, Inc. 6320 Fly Road E. Syracuse, NY 13057 Re: New York State Energy Research and Development Multifamily Performance Program Proposal for Newfield Garden Apartments, Newfield, New York. Dear Barb, We have conducted an analysis of the proposed retrofit at Newfield Garden Apartments for availability of incentive dollars through the NYSERDA Multifamily Performance Program. This proposal is a fixed price proposal for our assistance in complying with the requirements of the program and procuring the highest possible financial incentive for your project. This document is comprised of 6 sections as follows: Section Number Subject 1. Executive Summary 2. Program Explanation 3. Energy Evaluation 4. Summary of Incentives 5. Proposal Documents 6. Appendix: If you have any questions please call or e‐mail me. Sincerely, Albert LaValley Project Engineer Comfort Systems USA Energy Services 50 Baker Hollow Road Suite A Windsor, CT 06095. Cc: Bob Kurzon
Phone: (860) 687‐0709 Cell: (860) 595‐9907 Fax: (860) 687‐1762 Email: [email protected]
1. Executive Summary To assist the Two Plus Four Construction Co, Inc. in your efforts to evaluate the renovation project at Newfield Garden Apartments, Comfort Systems USA Energy Services surveyed the property located in Newfield, New York on Friday September 5, 2008. This report and recommendations are a result of that survey. The Newfield Garden Apartments Project is located in Newfield, New York, on Route 17. The property is comprised of one building, containing 28 apartment units. There are 28 – one bedroom apartments, an office, two laundry rooms and a large common area. Our evaluation concentrated on the proposed renovation project, which includes the conversion from electric to natural gas heat in the apartments. In the Multifamily Performance Program, incentives are based on achieving a 20% source energy use reduction, with incremental incentives given for exceeding that goal. The term source energy use refers to the amount of energy used at the power plant, natural gas distribution center, or oil refinery to make the energy that is eventually used in the apartment complex. There are very little losses between source and site for fuels such as natural gas and oil, however electricity loses 60% or more of its energy in transmission between source and site. This large difference places a premium on electrical energy savings which is highly beneficial to any project switching building systems from electricity to natural gas or propane. In order to establish the estimated incentives available for the proposed scope of this project, we determined the existing energy load profile in the apartment complex for the previous year and then estimated the energy that would be consumed in the year following completion of renovations. Table 1 shows a summary of the estimated pre Table 1: Summary of Pre/Post Retrofit Energy Use and post retrofit energy use. The project will reduce the electric load by 26.1%. With the added gas load, we estimate a source energy use reduction of 20%, which does not exceed the program goal, meaning the project does not qualifying this project for additional incentives. Summary of Total Incentives and Savings: Based on our estimates, we believe this project is eligible for $48,400.00 in incentives through the Multifamily Performance Program. We propose to partner with you to secure these funds for a fee of $23,900.00 (Twenty Three Thousand Nine Hundred), which would result in a net rebate of $24,500.00. We will line up our invoicing to coincide with your incentive payments which will result in a positive cash flow for you. There is also the possibility of additional incentives available through advanced measures and financing at a reduced interest rate through the New York State Energy Smart Loan Fund. We will also advise you on these alternate sources of funds.
Newfield Garden Apartments Phase I Report September 30, 2008
Page 4
Milestones: A summary of incentive milestones is shown in Table 2, with an estimate of timetable of when you will receive them. Table 2: Incentive Milestones
Newfield Garden Apartments Phase I Report September 30, 2008
Page 5
2. Program Explanation The New York State Energy Research and Development Authority (NYSERDA) Multi‐family Performance Program (MFPP) is a state wide utility incentive program designed to provide financial assistance and incentives to help owners and developers increase energy efficiency in multifamily housing. This program combines several previous programs providing assistance in the multifamily market and officially began in May of 2007. Unlike previous programs which provided financial assistance for residential audits or specific individual energy efficiency measures, the Multifamily Performance Program is designed to provide assistance during the entire project. The program’s goal is to achieve a minimum 20% source energy use reduction. The Multifamily Performance Program serves both retrofits to existing buildings and new construction, low income and market rate housing. For the existing building portion of the program the only requirement is that each building has 5 or more units. The incentives are paid out in four installments over the course of the project and the amount for each differs depending on the units being either market rate or low income housing. Additionally, each building is benchmarked against similar buildings at the beginning of the project, to determine the current efficiency level of the units. The benchmarking determines the amount of the final incentive, with the poorest performing buildings receiving the largest incentives for achieving their performance goals. Table 1 details the incentive amounts and when each is paid out. Table 3: Existing Building Incentives
Newfield Garden Apartments Phase I Report September 30, 2008
Page 6
3. Energy Evaluation The Multifamily Performance Program’s primary goal is to achieve a 20% reduction in the source energy use at the site. To establish if the proposed scope will meet this goal, we first evaluate yearly average building energy use for the two years prior to the retrofit and compare it with the projected building energy use in the year after the retrofit. The purpose of this Energy Evaluation is to: 1. Establish the amount of energy the complex has used over the past two years. 2. Estimate the amount of energy the building will use in a sample year when the proposed retrofit is complete. 3. Use the information calculated in the steps 1 and 2 to benchmark Newfield Garden Apartments and determine the amount of incentives the proposed retrofit may be eligible for under the Multifamily Performance Program. The first step in this process was to gather and compile all the energy bills for the previous two years. In some cases previous tenants had moved out of the property, and their utility data was not available. In those situations, we applied the average use for that size apartment. Figure 3 shows the data, broken down by energy and space type. The yearly electricity use was 107,905 kWh in the apartments and 51,540 kWh in the common areas. The average yearly natural gas use (including propone) was 3,314 Therms. Figure 1: Average Yearly Energy Use
Newfield Garden Apartments Phase I Report September 30, 2008
Page 7
A load profile is created by measuring or estimating individual loads within the complex, to determine how their total electric load is made up. Most utilities do not read each customers meter each month; rather they estimate usage for 1‐2 months in between actual measurements. In order to get a more accurate view of the actual month to month electrical load we have taken the three month moving average of the monthly totals. A graph of this data is included in Figure 2. Using the monthly usage numbers shown in Figure 2, we are able to generate a full electric load profile. The graph of this load profile is shown in Figure 3. More detail, including a table version of Figure 3 and explanation of calculations can be found in Appendix A: Load Calculations.
Figure 3: Estimated Existing Electric Load Profile
Figure 2: Load Profile by Energy Type
To predict the post retrofit load profile, we assumed site energy use for each group would remain constant except in the case of specifically stated efficiency upgrades. Also, heating, and common area dryers would be switching from electric to natural gas. Figure 4 details the total energy use by fuel type for both the pre‐retrofit and post‐retrofit situations. The information shown at the right is the key information needed to project the potential benchmarking score of the building both before and after the retrofit. The benchmarking report is included in Section IV: Summary of Incentives. Newfield Garden Apartments Phase I Report September 30, 2008
Page 8
Table 4: Load Profile by Energy Type
Newfield Garden Apartments Phase I Report September 30, 2008
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4. Summary of Economics Table 4 summarizes the incentives we believe are available through the New York State Energy Research and Development Authority’s Multifamily Performance Program for the proposed scope. There is also the possibility of additional incentives available through advanced measures and financing at a reduced interest rate through the New York State Energy Smart Loan Fund, which we will investigate during the preparation of the Energy Reduction Plan. Table 5: Program Benchmarking Summary
Table 5 details the estimated total building energy expenses for the pre and post retrofit case, at current utility rates. Table 6 shows energy and cost savings by Energy Conservation Measure and Table 7 shows project milestones, expected completion dates and incentive amounts.
Newfield Garden Apartments Phase I Report September 30, 2008
Page 10
Table 6: Estimated Yearly Utility Costs
Table 7: Energy Conservation Measure Savings
Newfield Garden Apartments Phase I Report September 30, 2008
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5. Proposal Documents SCOPE OF WORK: Comfort Systems USA Energy Services proposes to act as the Multifamily Performance Partner to Two Plus Four Construction Co, Inc. for its Newfield Garden Apartments renovation project. As the Multifamily Performance Partner we will be responsible to comply with all Multifamily Performance Program requirements including: completing program application, conducting a Full Energy Audit of the Newfield Garden Apartments and completing associated Energy Reduction Plan, completing all applications to receive incentive payments #1‐4, and completing review and re‐benchmarking process within 18 months of project completion (necessary to secure incentive #4). We propose to provide these services in a six step process. 1. We will assist you in filling out and submitting the initial application for the Multifamily Performance Program. 2. Once NYSERDA has approved the initial application, we will conduct an onsite Energy Audit and begin compiling the Energy Reduction Plan. It will be our responsibility to submit the completed plan to NYSERDA, along with the application for Incentive #1. 3. Once NYSERDA has approved the Energy Reduction Plan, you will be free to begin construction of the project. We will monitor the construction process to identify the appropriate steps to achieve the expected energy efficiency. 4. At 50% Construction Completion, we will submit the request for Incentive Payment #2, along with all supporting documentation. 5. At Substantial Construction Completion, we will submit the request for Incentive Payment #3, along with all supporting documentation. 6. 12‐18 Months after construction completion, we will re‐benchmark the building and submit the request for Incentive Payment #4, along with all supporting documentation. SCHEDULE: We propose to begin work for this project within ten (10) days of our receipt of two signed copies of our professional services agreement (available on request). Since we will be working with the design team throughout the construction process, we do not anticipate this program having any impact on project schedule as we understand it. FEES: We propose to provide the services described for a fee of Twenty Three Thousand Nine Hundred ($23,900.00). Please indicate your acceptance of our offer by signing and returning two copies of our professional services agreement. We look forward to working with you and the rest of your team on this project and other projects in the future.
Newfield Garden Apartments Phase I Report September 30, 2008
Page 12
Appendix A: Load Calculations
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Appendix B: Initial Benchmarking Report
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Newfield Garden Apartments Phase I Report September 30, 2008
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Appendix C: Utility Bill Summary
Newfield Garden Apartments Phase I Report September 30, 2008
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Newfield Garden Apartments Phase I Report September 30, 2008
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APPENDIX D: Summary of Pre/Post Retrofit Energy Use, Cost and Environmental Impact
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Newfield Garden Apartments Phase I Report September 30, 2008
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