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I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br />'1 <br /> <br />cc# <br /> <br />CONSIDER INSTALLATION OF GEOTHERMAL HEATING AND AIR <br />CONDITIONING IN FIRE STATION #2 <br /> By: Dean Kapler, Fire Chief <br /> <br />Background: <br /> <br />Ramsey's Fire Station #2 is in the final stages of design with mid January targeted for requesting <br />bids for construction. Recently, Connexus Energy has contacted staff to inquire about installing <br />Geothermal Heating and Air Conditioning (GHAC) in the building. GHAC is a closed system <br />that circulates liquid through the ground utilizing the constant ground temperature of 55-57 <br />degrees to heat in the cold season and cool during warm weather. The Police building utilizes this <br />type of system and staff has been quite pleased with the function of the system. <br /> <br />Financial Impact: <br /> <br />The system does come with an additional cost over the originally proposed natural gas system. At <br />a cost of $118,900, the GHAC system costs aprox $18,200 more than a conventional system. <br />(This figure includes a $18,800 rebate directly from Connexus along with additional architectual <br />fees for design) ... <br /> <br />Connexus has calculated a simple payback schedule on the $18,200 additional cost to be 1.6 yrs. <br />Calculations include both higher efficiency of the GHAC system and also the flat electrical rate <br />that Connexus offers (5 cents Kilowatt Hour as compared to 7 cents for industrial/commercial <br />rate) Savings beyond the 1.6 yrs would be reflected in lower operational cost. <br /> <br />Included in the I999 Fire Dept budget was a line item that included principle and interest <br />payments on an intra fund loan that at a later date it was determined to be more beneficial to <br />obtain Lease Revenue Bonds. The $18,200 can be taken from that line item. <br /> <br />Staff Recommendation <br /> <br />Staff recommends fire station specifications include installation of Geothermal Heating and Air <br />Conditioning at a cost of aprox $18,200. <br /> <br />Council Action <br /> <br />Motion to approve staff's recommendation to include installation of Geothermal Heating and Air <br />Conditioning. <br /> <br />Reviewed By: <br />City Administrator <br />Finance Director <br />Fire Chief <br /> <br />CC 12/21/99 <br /> <br /> <br />