Summary
Bergen County, New Jersey, has been improving buildings in the private sector as well as the public sector. The partnership Rebuild Bergen County has been honored for the work, especially for improvements in government buildings. In the commercial sector, the partnership has galvanized the retrofit of facilities run by Classic Athletic Club. The expertise of a Rebuild America Business Partner and adroit financing helped pave the way.

Challenge
The partnership of Rebuild Bergen County, a local government initiative, has taken on the task of improving energy efficiency in commercial as well as government buildings. But the private sector must keep an eye on the bottom line, and that especially means keeping capital spending down and aiming for reasonably quick payback periods. Classic Athletic Club, operator of two health club facilities, was a good candidate for energy-efficiency retrofits as long as the improvements could be done economically.

Solution
Metro Energy Solutions, a New Jersey-based energy service company and a Rebuild America Business Partner, was contracted to investigate energy conservation at Classic Athletic Club’s facilities in Lyndhurst and Fairfield. The project was done as part of the Rebuild Bergen County Energy Conservation Initiative.

The subsequent retrofit work was divided into two phases, with immediate payback in the first phase. Phase 1 involved replacement of all lighting and a hot water heater at the Lyndhurst facility. T-12 fluorescent lamps and magnetic ballasts were replaced with T-8 fluorescents and electronic ballasts. A water heater fired with natural gas replaced an electric water heater.

The better equipment for Phase 1 was provided under a leasing arrangement with a 10-year term, at the end of which the club will own the equipment. A subsidiary of the local utility financed the equipment and is recovering the cost by billing the club a percentage of the measured savings each month for the 10 years of the leasing. Because the club avoided any capital outlay that way, its savings began immediately.

In Phase 2, the Fairfield facility was upgraded. The switch was made to T-8 fluorescents and magnetic ballasts, and occupancy sensors connected to lighting controls were installed in indoor athletic courts. The equipment was provided under a five-year leasing term, after which the club takes ownership. The payback period for the club’s expenditures – restrained in part by a utility rebate – is four years.

The work was completed in 2002, and the results demonstrate the value of public-private initiatives. Overall costs were $26,968. The local utility’s incentives, factored into both phases, amounted to more than $177,000. Annual cost savings on energy amounted to more than $24,000. The results prove that the county is advancing its energy-efficiency goals while helping a commercial operation keep its bottom line in good shape.