COURT FACILITIES AND COUNTY SPACE NEEDS COMMITTEE

FEBRUARY 4, 2009
 

** NOT APPROVED **


Members Present:  D. Pullen, G. Benson, D. Fanton, W. Hall, T. Hopkins, T. O’Grady, C. Crandall

 

Others Present:  L. Ballengee, D. Burdick, W. Dibble, A. Finnemore, J. Foels, B. Hetzel, W. Higgins, K. Kruger, LaBella Associates Representatives (M. Kukuvka, R. McClung, Rachel Stuckey), J. Margeson, M. McCormick, T. Parker, B. Riehle, S. Spillane, K. Toot; Media:  J. Loyd, Olean Times Herald, B. Quinn, Wellsville Daily Reporter

 

Call to Order:  3:00 p.m. by Committee Chairman David Pullen.

 

Approval of Minutes: 

            The minutes of the January 7, 2009 meeting were approved following a motion made by Legislator Hopkins, seconded by Legislator Fanton and carried.

 

            The minutes of the January 26, 2009 meeting were approved following a motion made by Legislator Hopkins, seconded by Legislator Fanton and carried.

 

Barbara Hetzel:

            Barbara Hetzel, Chairman of the Allegany County Democratic Party, approached the committee about utilization of energy efficiency and enhancement practices in the course of the court facilities project.  Ms. Hetzel voiced her opinion against the bond issue, but now that the bond resolution has been approved by the Board, she wants to make sure that the County tries to make the project as energy efficient as possible, particularly in considering solar power.  She also noted that we have three colleges in the area, and would like to see their expertise used on some of the construction, especially in regards to the solar power.  The farm at Alfred State College and a couple of the buildings on the Wellsville campus are solar powered.  Ms. Hetzel is concerned that with the national party wanting to redo federal buildings and Governor Paterson backing the same view, we may be required to update the building in the future.  Although it may be more costly to construct a “green” building, we should do it now appropriately.

 

            Mr. Pullen pointed out that the committee has already brought up the energy efficiency issue, and LaBella Associates has been looking into it and doing some preliminary checking with NYSERDA (their update follows).

 

            Chairman Crandall noted that he spoke with Ms. Hetzel about her opinion on the bond resolution on the day that resolution was considered, and he wanted to reiterate that none of the legislators wanted to have to do this court project either, but action had to be taken.  Since then, he and County Administrator John Margeson have discussed green energy and reducing energy cost issues with Alfred State College staff.  They are very knowledgeable in this area and have offered their assistance. 

 

            Mr. Pullen commented that there has been a lot of research in this area, and we will want the building to be as energy efficient as possible.  If we can put solar panels on the roof, it will help to reduce energy costs.  There is still the initial cost to be considered, and we have to stay within the constraints of the approved bonding.

 

            Ms. Hetzel noted that she was looking into whether the Office of Court Administration really had the authority to sanction the County for non-compliance with the court facilities issue.  Mr. Fanton offered to give her a copy of OCA’s sanction letter and stated that they proved their authority by citing a couple of instances where it was done.  No one on the Board wanted to do this project, but we are being forced to.

 

Energy Efficiency Update, LaBella Associates:

            Mark Kukuvka introduced Rachel Stuckey and Richard McClung, both LaBella Associates LEED Accredited Professional Engineers, to speak about energy efficiency, their capabilities, and services they can provide.  They gave examples of other projects around the state, an update on NYSERDA, and highlighted opportunities available to Allegany County (copy of printed material attached to original minutes).

 

            LaBella Associates has provided services related to NYSERDA certification and funding for over ten years.  They can go through the process with the County to see if we want to go through with it and to what extent.  Funding comes from the surcharges on electric bills, so we’re already paying into it.  LaBella is a FlexTech provider, performing energy audits of existing facilities, recommending change, estimating payback, and monitoring changes to document actual costs and savings.  They have been involved in Industrial Process and Productivity Improvement through lake water source cooling, alternative technology for VOC reduction, and recuperative burner installation. Technical Review Services are offered in the Enhanced Commercial/Industrial Performance Program, Peak-Load Reduction Program, and Existing Facilities Program. 

 

            NYSERDA gives funding for energy improvements on the electrical aspects of construction.  For new construction, funding would be based on the size and complexity of enhancements:

 

·         Prescriptive Measures (maximum $30,000)

·         Custom Measure Approach (maximum $200,000)

·         Whole Building Design (maximum $750,000)

·         Green Building Option for LEED Projects (maximum $900,000)

·         Applicant LEED Incentives ($7,500)

·         Advanced Solar and Daylighting Incentives (maximum $200,000)

·         Peak-Load Reduction (maximum $2,000,000)

 

A fairly typical design would fall under prescriptive measures, with a set amount of money for each item being installed.  This would be the easiest, but least lucrative.  As you move down the first four items in the list, the options increase in difficulty and expense in order to receive the larger paybacks.  LaBella would guide the County through a cost in/cost out analysis.

 

            Mr. Pullen questioned if some of the listed options were cumulative or a choice of either/or.  Ms. Stuckey replied that the first four items are on an either/or basis and the last three are add-on items.

 

            Mr. Kruger asked about the stability of the funding, and Ms. Stuckey noted that the incentives are funded by electric bill surcharges, so they should be stable.  Also, there is a focus right now on green energy options.

 

            Mr. Pullen commented that peak load reduction wouldn’t be applicable for our facility because of our hours of operation.  Ms. Stuckey suggested that there are different things that can be done to shift daytime usage to night, higher efficiency measures can be used to reduce total usage, or in some facilities, some things can be shut off.  LaBella’s approach is to reduce consumption to a minimum and then start looking at other options such as solar panels. 

 

            Mr. Kukuvka explained that to qualify for the incentives, you have to identify and install the more energy-efficient items.  You have to spend more up front, but the idea is that you will recoup some of that extra cost in energy bill reductions.  The incentives would pay for a portion of the incremental cost, usually about 50 percent.  Mr. Kukuvka pointed out that the total incentive Allegany County would be looking at would be thousands of dollars, not millions.  It may be as high as $60,000.

 

            Chairman Crandall questioned the payback periods for the higher cost, more efficient equipment, which would be reduced by a certain amount of NYSERDA funding, and if there were fairly accurate estimates on those and assumptions on funding so that we would know up front prior to commitment.  Ms. Stuckey and Mr. Kukuvka both ensured that LaBella would go through that process and provide enough information to allow the County to make a decision.

 

            Ms. Stuckey listed a few of the ideas they would suggest for Allegany County’s project (figures used are rough averages):

·         Reductions in Energy Use

o        High Efficiency Equipment

o        Demand Control Ventilation

o        Building Envelope

o        Building Commissioning and Training Staff on the equipment that will require a higher level of maintenance.  Mr. Hopkins questioned if the increased maintenance over the life of the equipment would be figured into the cost savings.  Mr. McClung noted that it’s either a simple payback or a life cycle cost, which is more involved to prepare, but we may want to do both on selected pieces of equipment. 

o        Install Sufficient Metering to Track Consumption, and to look at it weekly or daily to find or solve problems.  Mr. McClung added that it’s fairly easy to do that now with computerized tracking to check performance.

·         Geothermal (ground source heat pumps)

o        Involves drilling vertical wells outdoors, 150 to 200 foot bore depth per ton, spacing of approximately 20 feet.  Well installation would be dependent on site; a test well would be done to check performance.  Cost for one well $8-10,000.

o        Previous study:  28-year simple payback, no outside funding figured. 

·         Photovoltaic (PV) or Solar Cells. 

o        Previous study:  26-year simple payback assuming 50 percent outside funding.

·         Wind Turbines

o        Evaluate local wind properties, site suitability, cost.

o        Previous study: approximate 68-year simple payback, no outside funding figured.

 

            Possible uses for water from the Genesee River were discussed.  Ms. Stuckey noted that there is a facility in Rochester that uses the river.  If we wanted to pursue that, it would take a lot of lead time to deal with DEC applications, and they would need data on river temps and flow.  Mr. Kukuvka suggested that we wouldn’t want to get hung up in applications and regulations.  Use of the river would almost be a separate project with a life of its own.

 

            Chairman Crandall questioned how to know what investment to make in order to get the answers we need to discover the break-even point, while doing everything we can to make this project as green as possible.  Ms. Stuckey replied that they would look at our utility rates to see what range we’re in, apply their ideas to our building to find the most favorable ones, and take a high level approach before getting too far and prior to any output of money.  Mr. McClung noted that LaBella just finished a project for which they provided all the information allowing the client to make a decision after looking at several options. 

 

            Mr. Pullen asked if there were general projections for cost for getting a building LEED certified.  Mr. Kukuvka noted it usually adds five to ten percent.  There are four classifications: certification, silver, gold, and platinum.  Each step up costs more and is more creative and innovative.  It won’t be too difficult to get the court facilities project certified, and may be only a little stretch to get to silver.  The additional cost from a design and construction standpoint would be two to three percent for certification and fifteen to twenty percent for platinum.  Mr. Kukuvka understood from his past conversations with the committee that the County wanted to do good energy efficient practices on the project but had no time to enter into a formal LEED program.  At this time, LaBella’s estimate is based on that, and we will be somewhere around a certified building.  The estimates do not include a higher-end, innovative, higher-cost payback solution, but they can work up those options to allow a decision.

 

            Mr. Kukuvka commented that our project has not been registered with NYSERDA yet, but as we move forward, we will have to accelerate the process with them.  There would be discussion with NYSERDA, and they would provide guidance through the process and assistance on payback estimates.

 

            Mr. Pullen asked if LaBella has had any contact with Alfred State on the solar panel technology.  There could be good results through a partnership.  Ms. Stuckey responded that they could investigate taking advantage of their expertise as things progress.

 

            Mr. Kukuvka commented that there are energy performance contractors out there, but LaBella doesn’t do that.  It’s a good idea to provide some initial assessment, if a firm offers that service.  LaBella has done work for those contractors; they’ve assisted both parties. 

 

            Chairman Crandall questioned what a basic evaluation would do to our timing.  He assumed we would have to make some decisions fairly quickly.  Mr. Kukuvka noted that enough time is built into design for LaBella’s energy team to do that analysis, but it has to happen within the next month or so.  They can come back with some preliminary assumptions, and it would take 30 days to develop ideas and another 30 days for a deeper analysis.

 

            An agreement with LaBella Associates for final design services for the Allegany County Court Facility will be considered by the full Board of Legislators on February 6, 2009.

 

IDA Lease Agreement Proposal for Crossroads Center Addition:

            IDA Director John Foels updated the committee on a lease proposal for the Crossroads Center addition for Office for the Aging, NY Connects, and the Veterans’ Service Agency.  Chairman Crandall and County Administrator John Margeson have reviewed the lease, which includes two consecutive five-year leases renewable after ten years, with terms very similar to the existing space at Crossroads.  There is a termination clause of 30 days.  IDA provides heat, water, sanitary, outside maintenance, and snow plowing.  Electric and telecommunications would be County expenses.  The square footage has been expanded from 6,500 to 8,000 to accommodate current and some future anticipated needs.  The annual lease payment will be $96,000 ($12 per square foot).  Lease payments will remain flat for the first ten years and negotiated after that.  Mr. Foels noted that they would like to have the agreement approved by March 1, and the commencement date would be June 1.  IDA’s construction costs will be between $80 and $100 per square foot, and they will be pushing toward the lower end.  Lending will be based on a 20-year term, and the County’s ten-year commitment leaves a significant portion of principal left at the end.

 

            When questioned about the expansion from 6,500 to 8,000 square feet, Mr. Foels cited the need for additional storage, additional NY Connects office space due to staff projections, the Veterans’ Offices were moved from the previous plans, and a staff break area has been provided that was not originally planned.  For perspective, the addition will be about the same size as the left wing of the existing Crossroads Center.  It has been designed to be more secure and self-contained.  There are some other things to work out, and they will come back with a full set of plans, but start dates and a commitment from the County are needed in order to lock in financing.

 

            Chairman Crandall pointed out that it would cost a fair amount if we were looking at a satellite-type facility without these arrangements for plowing and outside maintenance, and it gets expensive to have to send employees to do those tasks.  This type of arrangement makes sense.

 

            Mr. Hopkins commented that having separate rooms for most of Office for the Aging staff will be more efficient than being packed in as they are now.  Office for the Aging Director Kimberly Toot noted that they currently pay for electric, heating, and phone out of their budget, with some reimbursement by state and federal funds, so they are used to paying these expenses and have budgeted for them.  Veterans’ Service Agency Director Scott Spillane commented that he and Ms. Toot have many of the same clients, so this move makes sense.

 

            Mr. O’Grady questioned if the County owns the current Office for the Aging building.  Mr. Margeson responded in the affirmative.  Mr. O’Grady pointed out that with this proposed lease, we would be looking at an additional $96,000 per year in the budget.  Mr. Pullen replied that the cost is less than the actual total costs associated with other facilities, and there were no other suitable locations available.  The present OFA facility is a safety hazard.

 

            Mr. Margeson has reviewed the lease and discussed it with Mr. Foels.  He will e-mail the information to committee members tomorrow and have the County Attorney review it.

 

            A motion was made by Legislator Fanton, seconded by Legislator Hopkins and carried unanimously to support the lease agreement with the IDA for the proposed addition at the Crossroads Center for Office for the Aging, NY Connects, and the Veterans’ Service Agency, with terms as described.  Referred to Ways and Means Committee.

 

NEXT MEETING:  Wednesday, March 4, 2009 at 3:00 p.m.

 

Adjournment:  The meeting was adjourned at 4:15 p.m. following a motion made by Legislator Fanton, seconded by Legislator Hopkins and carried.

 

Respectfully submitted by

Adele Finnemore, Journal Clerk