The Bemidji Guaranteed Energy Savings Program (GESp) aims to finance building retrofits through energy and operational savings, backed by a contractor's guarantee. The project involves nine city-owned buildings with an approved budget of $2.5 million and is expected to generate annual savings of $99,000 and $21,000 in operations and maintenance, along with one-time utility rebates of $122,000. Challenges included financing issues and project delays, but the program also offered benefits like streamlined implementation and cost savings through competitive bidding.

1. BEMIDJI GUARANTEED ENERGY
SAVINGS PROGRAM (GESP)
Mayor Rita C. Albrecht

2. GESP
GUARANTEED
ENERGY
SAVING
PROGRAM

4. What is GESP?
• Guaranteed Energy Saving Project leverages
energy and operational savings to finance
building retrofits and renewal projects
• Written guarantee from contractor for
savings to pay annual financing
• If savings not met, contractor will reimburse
the shortfall

5. How did we get started?
Received a
cold call from
Honeywell

6. • 9 Buildings were
evaluated

7. The Sanford Center

8. Public Library--1980s vintage

9. Public Works Building

10. Waste Water Treatment--2 buildings

11. Ice Arena--Oldest structure

12. City Hall built in 1970s

13. How did we get started?
• Also included fire hall and law enforcement
center
• Honeywell determined potential projects and
estimated energy savings
• Presented the information to city council

14. How did we get started?
• Staff contacted other government entities
who had gone through the process
• Staff contacted the Dept. of Commerce for
information about GESP
• Council decided to use the GESP process
• City advertised a request for proposals
• Chose Honeywell as contractor for the
project

15. Project Scope
• $2.5 million in
approved projects
• 9 different City
owned buildings

16. Project examples
• Interior building
lighting
improvements -
$231K
• Building envelope
sealing –
windows/doors
caulking

17. Project examples
• Energy system
control
improvements
• Mechanical (HVAC)
system
upgrades/replaceme
nts - $550K

18. Project examples
• Exterior street
lighting upgrades to
LED - $1.2 million

19. Estimated Savings
• Annual Energy Savings generated $99,000
• Annual operations and Maintenance savings
$21,000
• One time utility rebates $122,000

20. Streetlight retrofit
• 1,014 Streetlight LED change-
out
• Engineer’s estimate $906,000
• Bids came in at $583,000
• Project will be completed April-
September 2015

21. Streetlight retrofit
• Estimated utility savings of
$70,000/year
• Significant annual cost
savings on maintenance
and repair (20 year bulb
life)
• Payback of approximately
7-8 years

22. Challenges

23. Challenges of GESP
• Initial project with City our size and for
Honeywell
• Time delays to get to construction phase to
follow GESP process
• Some glitches in project financing – required
financing over 20 years vs. 15 years
• Not all projects were selected due to long
payback periods

24. Benefits
• Streamlined process
for selection and
implementation of
program
• Competitive bidding
among prequalified
energy companies
• Minimized work load
on City staff; no
energy experts on
staff

25. • Accelerated timeline to
implement projects
• Majority of projects
paid for with energy
savings over period of
time
• All bidding and
contracting is
completed by
Honeywell
Benefits

26. Project recap
• $2.5 million in approved projects
• 9 different City owned buildings
• Annual energy savings generated
$99,000
• Annual operations and maintenance savings
$21,000
• One time utility rebates
$122,000

27. Rita C. Albrecht, Bemidji Mayor