Page 1 of 2 Agenda Item No.
AGENDA ITEM BRIEFING
Submitted by: Vergel L. Gay, Jr., Chief Facilities Planning and Construction Officer
Subject: Approval of the Project Scope and Budget, Appropriation for Construction Services, and Approval for Construction for the Energy Consumption Reduction Project at Texas A&M University, College Station, Texas (Project No. 2-3068)
Background and Prior Actions:
The Board of Regents amended The Texas A&M University System Capital Plan to add the Energy Consumption Reduction Project for Texas A&M University at the January 2010 meeting.
Proposed Board Action:
(1) Approve the project scope and budget.
(2) Appropriate $9,000,000 for construction services and related project costs subject to
approval of the project by the Texas Higher Education Coordinating Board.
(3) Approve construction of the Energy Consumption Reduction Project at Texas A&M
University subject to approval of the project by the Texas Higher Education Coordinating Board. Funding/Planning Amount: Funding Source Planning Amount Average Estimated Annual Debt Service Debt Service Source
SECO Loan Program $10,000,000 N/A
Utility Revenues
Total Project Funds $10,000,000
Project Justification:
Texas A&M University has been approved to receive a $10 million low interest loan from the Texas State Energy Conservation Office (SECO). The loan is to fund upgrades in 17 facilities (12 buildings and 5 parking garages) to improve facility operating efficiency and environment. This will be attained through implementation of building control system and lighting retrofits resulting in reduced energy consumption and greenhouse gas emissions. The $10 million will be borrowed from SECO at 2% interest and repaid over ten years. Simple payback of less than ten years (based on avoided energy consumption using FY10 energy costs) is projected by the energy service company (ESCO) hired to perform energy audits along with both project design and construction. Loan repayment will be made from purchased energy cost avoidance. If the projected energy consumption avoidance is not achieved, the ESCO will be responsible to pay
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the University for any shortfall in projected savings caused by not meeting the energy avoidance target.
Scope:
A low interest loan of $10 million has been approved for Texas A&M University from the Building Efficiency and Retrofit Program, managed by SECO, through a revolving loan program. This loan program is established with funds from the American Recovery and Reinvestment Act of 2009 (ARRA) stimulus funds.
In compliance with the terms of the SECO loan program, an Energy Service Company (ESCO) engaged by Texas A&M for this project has completed detailed utility assessment reports (UARs) for 17 Texas A&M campus facilities (12 buildings and 5 parking garages). The facilities included in the assessment are identified and located on the map with this agenda item. The ESCO assessments have determined recommended upgrades in building systems and parking garage lighting to improve facility operating efficiency and reduce energy consumption and resulting greenhouse gas emissions. The upgrades will include:
+ Lighting upgrades to install light switches, retrofit lamp fixtures, install occupancy sensors along with daylight harvesting controls, retrofit low power programmed start ballasts and replace old incandescent fixtures with more efficient contemporary fixtures + Heating, ventilating and air conditioning (HVAC) upgrades to install outside air damper
motors on air handling units, convert chilled and heating water systems to direct digital control, upgrade fan coil units and air handling units and replace variable air volume box sensors
+ Building automation upgrades to install CO2 sensors, adjust zone temperature set points
and minimum air flows based on newly installed occupancy sensors, implement a demand ventilation system and re-commission the energy management system to take full advantage of zoned direct digital controls
The ESCO has provided a Guaranteed Maximum Price (GMP) to install the above energy consumption reduction measures which are projected to provide purchased energy cost savings sufficient to repay the SECO loan in 10 years or less.
The execution of a design-build agreement to design and construct the project is scheduled for October 1, 2010. Construction on an early release package for lighting upgrades on the project is expected to begin in October 2010. The total project is currently scheduled for completion by December 2011. The total project budget is $10,000,000.
Other Major Fiscal Impacts:
None.
Agenda Item No.
THE TEXAS A&M UNIVERSITY SYSTEM FACILITIES PLANNING AND CONSTRUCTION
Office of the Chief Facilities Planning and Construction Officer August 13, 2010
Members, Board of Regents
The Texas A&M University System
Subject: Approval of the Project Scope and Budget, Appropriation for Construction
Services, and Approval for Construction for the Energy Consumption Reduction Project at Texas A&M University, College Station, Texas (Project No. 2-3068) I recommend adoption of the following minute order:
“The project scope along with a project budget of $10,000,000 for the Energy Consumption Reduction Project is approved.
The amount of $9,000,000 is appropriated from Account No. 02- 808204, SECO-Energy Consumption Reduction 2-3068, for construction services and related project costs. Appropriation is subject to approval of the project by the Texas Higher Education Coordinating Board.
The Energy Consumption Reduction Project, Texas A&M University, College Station, Texas, is approved for construction subject to approval of the project by the Texas Higher Education Coordinating Board.”
Respectfully submitted,
Vergel L. Gay, Jr.
Chief Facilities Planning and Construction Officer
Approval Recommended: Approved for Legal Sufficiency:
Michael D. McKinney Andrew L. Strong
Chancellor General Counsel
________________________ Gregory R. Anderson
Chief Investment Officer and Treasurer ________________________
R. Bowen Loftin, President Texas A&M University
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ENERGY CONSUMPTION REDUCTION PROJECT