7b memo
PORT OF SEATTLE MEMORANDUM COMMISSION AGENDA Item No. 7b STAFF BRIEFING Date of Meeting March 11, 2014 DATE: February 14, 2014 TO: Tay Yoshitani, Chief Executive Officer FROM: Dave Soike, Director Aviation Facilities and Capital Program Wayne Grotheer, Director Aviation Project Management Group SUBJECT: Airport-wide Energy Conservation Program - Stage III Mechanical Energy Conservation Project Analysis and Design (CIP #C800658) BACKGROUND The Stage III Mechanical Energy Conservation project objective is to improve the energy performance of the mechanical infrastructure system at the Airport. This mechanical project is a portion of an overall energy conservation program in progress since 2001 that also includes electrical projects, for example the current upgrade to parking garage lighting. The conservation program utilizes a partnership between the Port of Seattle, Washington State Department of Enterprise Services, and an Energy Service Company (ESCO) in order to facilitate the most cost-effective approach to completing energy conservation measures to existing facilities. The program requires that the ESCO guarantee a level of energy savings prior to construction and then measure and verify the level of savings after the project is complete. This is the third mechanical energy conservation initiative developed by the Port of Seattle. Stage I was completed in 2008 and Stage II was just recently completed. This project will provide a 10% internal rate of return for energy conservation measures that will be one of several to help offset future energy needs for projected building expansions such as the new International Arrivals Facility and the NorthSTAR projects. The initial request will fund the analysis and design work to conduct the energy audit, prepare the project notebook, prepare preliminary designs, calculate the savings, and the rate of return for the proposed energy conservation measures. A future Commission request will be made upon completion of this preliminary phase to execute the revisions to the infrastructure that meet the payback criteria and verify that the savings to the Airport are realized. ATTACHMENTS TO THIS BRIEFING Computer slide presentation. PREVIOUS COMMISSION ACTIONS OR BRIEFINGS October 1, 2013 Aviation Division Capital Budget, Commission Briefing Template revised May 30, 2013.
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