STAFF REPORT Facilities & Fleet

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1 1 Corporate Services STAFF REPORT Facilities & Fleet Title: Energy Efficient & Greenhouse Gas Emission Reducing Retrofits in City of Waterloo Facilities Report Number: CORP Author: Jean Starchuk, Project Manager Meeting Type: Finance & Strategic Planning Committee Meeting Council/Committee Date: October 21, 2013 File: N/A Attachments: Appendix #1 Summary of Recommended Energy/Water Saving Measures & Impact of Implementation Ward No.: All Wards Recommendation: That the Council of the City of Waterloo approves CORP and; 1. That Council approves $4.072 million in funding for the Energy Efficient & Greenhouse Gas Emission Reducing Retrofits in City of Waterloo Facilities from the Approved Capital Budget in the amount of $275,000 from Project #110012, $280,000 from Project #110013, $1,806,000 from Project #110014, $1,286,000 from Project # and $425,000 from Project #110016, to address the upgrades at Albert McCormick Community Centre, City Centre (City Hall), Citywide Initiatives, Manulife Financial Sportsplex & Healthy Living Centre (RIM Park) and Waterloo Memorial Recreation Complex, respectively. A. Executive Summary On November 7th 2011, as a result of CSAM , City of Waterloo Council approved capital funding for the completion of energy and water assessment reports for City owned fixed assets, such as facilities, parking lots, park structures and street lighting. The goal of these reports was to explore opportunities to upgrade existing lighting, heating/ventilation/air-conditioning (HVAC), building automation system (BAS) systems, etc. for energy and water efficiencies. In addition the City was to gain insight into the feasibility of incorporating renewable sources of energy while also investigating other means to reduce the overall energy/water consumption and greenhouse gas footprint, such as commissioning. Facilities and Fleet recently received energy and water assessment reports authored by Stantec Consulting Ltd. dated August 2013 for 39 City owned fixed assets, including

2 2 Corporate Services those that are leased out to various tenants. Within those reports were a total of 152 energy and water saving measure recommendations that were evaluated against criteria such as payback, system life-cycle, etc. As a result 102 energy and water saving measures, summarized in the attached appendix #1, are being brought forward for implementation in These measures include: 1. HVAC unit replacements & demand control ventilation installation 2. Lighting fixture replacement & re-lamping 3. Installation of building automation systems & occupancy sensors 4. Chiller & dehumidifier replacements 5. Plumbing fixture upgrades & low-flow water fixtures installations In addition staff are currently working on a Corporate Energy & Greenhouse Gas (GHG) Inventory, Forecast and Action Plan that is due under the Green Energy Act by July 1st This plan must include a description of previous, current and proposed measures for conserving energy and managing demand and will incorporate the energy savings measures approved by Council in this report. Once this Plan is finalized the City of Waterloo will be in a position to comply with corporate milestones 1 (GHG Inventory & Forecast), 2 (Reduction Target) & 3 (Action Plan) under the Partners for Climate Protection (PCP) program and also determine the feasibility of a pledging partnership under the Sustainable Waterloo Region initiative. This Plan will include emissions related to not only City owned buildings, but also fleet fuel use, staff business plane travel, etc. It is anticipated that this item will be brought forward to Council for approval later this fall or early winter. B. Financial Implications The capital funding outlined in this report is currently approved in the Capital Budget and any difference between this capital funding and project implementation cost for the proposed 102 energy and water saving measures will be adjusted internally within the projects. At this time any available funding over the required project budget will be set aside as a project contingency. External funding opportunities currently made available by our local distribution companies (LDC s) are anticipated for the recommended building upgrades. It is important to note that as a result of the implementation of these 102 energy and water saving measures per Stantec s energy and water assessment reports there will be a: potential reduction of the corporate infrastructure deficit by an estimated $1.7 million. potential reduction of an estimated $530k in annual utility/maintenance savings against an annual City utility expenditure of approximately $3.24 million (2012) and annual facility maintenance operating budget of $636k (2013).

3 C. Technology Implications 3 Corporate Services New energy/water saving equipment/technologies will be installed in City facilities as a result of these upgrades. D. Legal Considerations Staff did not seek legal advice. E. Link to Strategic Plan/Economic Vitality (Strategic Pillars: Sustainability and Our Living Environment, Public Engagement, Healthy & Safe Community, Vibrant Neighbourhoods, Getting Around, Economic Vitality) Energy Efficient & Greenhouse Gas Emission Reducing Retrofits in City of Waterloo Facilities has a direct link to the City of Waterloo Strategic Plan : Sustainability and our Living Environment - Continue to focus on the action items within the environmental strategy in all five categories: energy, air and waste, planning and growth, water resources, greenspace, and environmental awareness and culture F. Previous Reports on this Topic 1. CORP/AM Energy Management Plan & Green Building Policy January 28 th CSAM Energy Management Plan November 7 th G. Approvals Author: Jean Starchuk Director: Sunda Siva Commissioner: Keshwer Patel Finance: Keshwer Patel Name Signature Date CAO

4 4 Corporate Services Energy Efficient & Greenhouse Gas Emission Reducing Retrofits in City of Waterloo Facilities CORP Background On January 28th 2008, as a result of CORP/AM07-071, City of Waterloo Council approved the Energy Management Plan (EMP) to reduce energy/water consumption and greenhouse gas emissions for City owned fixed assets, such as facilities, parking lots, park structures and street lighting. At that time, Council also approved the EMP funding for associated professional and construction fees, which in turn was rebudgeted in the Capital Budget process. On November 7th 2011, as a result of CSAM , City of Waterloo Council approved capital funding for the completion of energy and water assessment reports for City owned fixed assets, such as facilities, parking lots, park structures and street lighting. The goal of these reports was to explore opportunities to upgrade existing lighting, heating/ventilation/air-conditioning (HVAC), building automation system (BAS) systems, etc. for energy and water efficiencies. In addition the City was to gain insight into the feasibility of incorporating renewable sources of energy while also investigating other means to reduce the overall energy/water consumption and greenhouse gas footprint, such as commissioning. Energy Efficient & Greenhouse Gas Emission Reducing Retrofits The following table shows the average annual utility consumption and related expenditures for for those assets included in the energy and water assessment reports authored by Stantec Consulting Ltd, dated August The values include City of Waterloo owned assets that are leased and the utility bills aren t paid by the City. Newer assets such as Fire Station #4 and the John M. Harper Branch Library and Stork Family YMCA are not included in these figures. Table Average Annual Utility Consumption & Related Expenditures per Stantec s Energy & Water Assessment Reports Natural Gas/Propane (m 3 /L) Gas/ Propane Electricity (kwh) Water (m 3 ) Electricity /Water GHG (T) Average 2,036,891/ 15,772 $785,596 25,432, ,480 $2,958,464/ $348, Facilities and Fleet recently received energy and water assessment reports for 39 City owned fixed assets and within those reports were a total of 152 recommended energy and water saving measures that were evaluated against criteria such as payback, system life-cycle, etc. As a result 102 energy/water saving measures, which are

5 5 Corporate Services summarized in the attached appendix #1, are being brought forward for implementation in An additional 20 energy/water saving measures are being considered for implementation outside of this report between 2013 and 2020 and the remaining 30 measures aren t recommended at this time but will be re-evaluated at a later date. The 102 energy/water savings measures being recommended per this report include: 1. HVAC unit replacements & demand control ventilation installation 2. Lighting fixture replacement & re-lamping 3. Installation of building automation systems & occupancy sensors 4. Chiller & dehumidifier replacements 5. Plumbing fixture upgrades & low-flow water fixtures installations The following table shows the estimated positive impact of implementing the 102 energy/water saving measures recommended for implementation in Table Energy/Water Saving Measures Implementation per Stantec s Energy & Water Assessment Reports. Payback Project (yrs.) 102 Actions for Impact on Existing Facility Deficit Annual $4,122,125 $1,715,000 $530,434 * Gas (m 3 )/ Propane (L) 7.8* 132,875/ 658 Elec. (kwh)/ Water (m 3 ) 2,794,977 /38,637 GHG Reduc -tion (T) 728 (equals 132 cars off the road) * Includes overall energy cost savings and maintenance costs savings related to relamping per Stantec s energy and water assessment reports for those assets where the City of Waterloo is responsible for paying the utility bills. These 102 recommended actions will result in an estimated annual electricity kwh reduction of 11%, a gas m 3 reduction of 6%, a propane L reduction of 4%, a water m 3 reduction of 32% and a greenhouse gas emission reduction of 9% for City owned facilities included in this assessment over the average baseline per Stantec s energy and water assessment reports. The following table indicates the schedule for the Implementation of the 102 Energy/Water Saving Measures. Table 3 Implementation Schedule Action Description Date Request for RFP issued to determine company that can provide Fall 2013 Proposal (RFP) design, engineering & contract admin. Review RFP Submissions & City Staff to review/evaluate submissions and notify successful bidder. Council to award project and Fall 2013 Winter 2014 Council Approval execute contract, if applicable. Grant Applications The successful company will aid the City in applying Winter 2014 for external grant funding from LDC s.

6 6 Corporate Services Action Description Date Scope of Work Design/Engineering completed. Winter Spring 2014 Request for RFT s issued to determine contractor(s) Spring 2014 Tenders (RFT s) Review RFT Submissions & Council Approval City Staff to review/evaluate submissions and notify successful bidder. Council to award project and execute contract, if applicable. Spring 2014 Scope of Work Construction Spring Winter 2014 Measurement & Verification Early rd Party verification of 2015 energy/water cost energy/maintenance savings as a result of implementation. will be re-allocated to Facilities & Fleet operating program to further improve our assets in the context of City budget priorities. As mentioned previously in the report 20 of the recommendations noted in the energy and water assessment reports that are not being recommended per this staff report are still being planned between now and 2020 and they will contribute to overall estimated savings once implemented. These projects include those that are already budgeted for in the approved Capital Budget & Forecast such as the Service Centre Rehabilitation and other initiatives that need to be done in the near future based on need/life cycle but the estimated utility/maintenance cost savings/payback aren t significant enough for recommendation at this time. These 20 measures are over and above the 102 measures mentioned previously in the report but are or will be built into the normal capital budget project cycle. Please see Table 4 below for more information. Table 4 The additional 20 Energy/Water Saving Measures that are to be Implemented in per Stantec s Energy & Water Assessment Reports. Project Impact on Existing Facility Deficit Annual Payback (yrs.) Gas (m 3 ) Elec. (kwh)/ Water (m 3 ) GHG Reduction (T) 20 Actions for $1,764,200 $1,131,000 $67,471 * 26 60, ,484/ (equals 34 cars off the road)

7 7 Corporate Services * Includes overall energy cost savings and maintenance costs savings related to relamping per Stantec s energy and water assessment reports for those assets where the City of Waterloo is responsible for paying the utility bills. In addition energy assessment recommendations pertaining to commissioning (e.g. duct cleaning, weather stripping, air balancing etc.) are being incorporated into future maintenance plans for City facilities. Facilities & Fleet is also evaluating the implementation of eight solar photovoltaic power installations per the energy assessment reports and further information on these recommendations will be brought forward to Council at a later date. Corporate Energy & Greenhouse Gas (GHG) Inventory, Forecast and Action Plan The approved funding per CSAM was also used to assist the City of Waterloo in meeting the first two mandatory reporting deadlines outlined in Ontario s Green Energy Act. This includes the first annual report on energy consumption and GHG emissions for designated municipally owned and operated facilities using 2011 energy data that was due July 1st Staff are currently working on a Corporate Energy & Greenhouse Gas (GHG) Inventory, Forecast and Action Plan that is due under the Green Energy Act by July 1st This plan must include a description of previous, current and proposed measures for conserving energy and managing demand and will incorporate the energy savings measures approved by Council in this report. Once this Plan is finalized the City of Waterloo will be in a position to comply with corporate milestones 1(GHG Inventory & Forecast), 2 (Reduction Target) & 3 (Action Plan) under the Partners for Climate Protection (PCP) program and also determine the feasibility of a pledging partnership under the Sustainable Waterloo Region initiative. It is important to note that this Plan will include emissions related to not only City owned buildings, but also fleet fuel use, staff business plane travel, etc. It is anticipated that this item will be brought forward to Council for approval later this fall. Financial Background Project Description Approved Capital Budget Line # 115 Energy Management Upgrades - AMCC 116 Energy Management Upgrades City Centre 117 Energy Management Upgrades General* Finance Source Total Project 2011 Funding Request 2013 Funding Request CRF $295,000 $20,000 $275,000 CRF $300,000 $20,000 $280,000 CRF/ $1,921,000 $115,000 $1,806,000 GTR 118 Energy Management CRF $1,356,000 $70,000 $1,286,000

8 Project Description Approved Capital Budget Line # Upgrades RIM Park 119 Energy Management 8 Corporate Services Finance Source Total Project 2011 Funding Request 2013 Funding Request CRF $450,000 $25,000 $425,000 Upgrades - WMRC Total N/A $4,322,000 $250,000 $4,072,000 * This includes HVAC, lighting and water saving upgrades at the Adult Recreation Centre (ARC), Canadian Clay & Glass Gallery, Erbsville Community Centre, Manulife Financial Soccer & Sports Complex, Moses Springer Community Centre, Mount Hope Cemetery, Parkview Cemetery, Rink in the Park, Uptown Parkade, St. Jacobs Railway, Button Factory, Carnegie Library, Elam Martin Farmstead, EMS Building, Grey Silo Golf Course, Uptown Parkade, Waterloo Library and Various Parks/Parking Lots/Pumping Stations.

9 Appendix #1 - Summary of Recommended Energy/Water Saving Measures Impact of Implementation* Type Descriptions Assets Total Project Implementation Estimated Annual Utility & Maintenance Simple Payback (Years) HVAC Demand Control Ventilation, Roof Top Renewal, Timer on Snack Bar Hood, Ventilation Renewal, Building Automation System, Internal Temperature Reduction, Furnace/Boiler Plant Renewals, Packaged Unit Replacement, Exhaust Hood Replacement, Chiller Replacement, High Efficiency HVAC Renewal, Seal Unused Hose Drying Tower, Resurfacing Water Preheat & Dehumidifier Replacement Adult Recreation Center (ARC), Albert McCormick Community Centre, Beaver Creek Pumping Station, Colonial Pumping Station, Erbsville Community Centre, Frobisher Pumping Station, Millennium Pumping Station, Mount Hope Cemetery, Northlands Pumping Station, Parkview Cemetery Administration & Chapel Buildings, Manulife Financial Sportsplex & Healthy Living Centre, Rink in the Park (Granite Club), Waterloo Memorial Recreation Complex, Waterloo Park, St. Jacob Railway, Button Factory, EMS Building, Waterloo Library & Grey Silo $1,560,800 $116, Lighting Occupancy/Vacancy/Photo Sensor Installations, Ice Rink Lighting System Renewal, Interior Lighting Retrofit, Exterior Lighting Retrofit Addressable Lighting & Natural Lighting Controls Adult Recreation Center (ARC), Albert McCormick Community Centre, Canadian Clay & Glass Gallery, Eastbridge Park, Fire Station 2, Fire Station 3, Frobisher Pumping Station, Hillside Park, Malabar Pumping Station, Manulife Financial Soccer & Sports Complex, Millennium Pumping Station, Moses Springer Community Centre, Our Lady of Lourdes, Parking Lots, Parks, Manulife Financial Sportsplex & Healthy Living Centre, Rink in the Park, Uptown Parkade, Veteran's Green, Waterloo City Centre, Waterloo Memorial Recreation Complex, Waterloo Park, St. Jacob Railway, Button Factory, Carnegie Library, Elam Martin Farmstead, EMS Building, Grey Silo & Waterloo Library $2,180,795 $301, Water Low-Flow Water Fixtures & Plumbing Fixture Replacement 404 Wing Rotary, Adult Recreation Centre (ARC), Albert McCormick Community Centre, Bechtel Park, Fire Station 2, Fire Station 3, Manulife Financial Soccer & Sports Complex, Moses Springer Community Centre, Mount Hope Cemetery, Manulife Financial Sportsplex & Healthy Living Centre, Rink in the Park, Uptown Parkade, Waterloo Memorial Recreation Complex, Waterloo Park & St. Jacob Railway. $380,530 $111, All Summary of Recommended Energy/Water Saving Measures & Impact of Implementation All $4,122,125 $530, Average Annual Utility Consumption All N/A Energy Assessment Reports CSAM All $250,000 Energy Assessment Reports Approved Grant Funding - Federation of Canadian Municipalities Green Municipal Fund** All ($109,655) Project Contingency All $59,530 Total Project Implementation All $4,322,000 *Information per energy and water assessment reports authored by Stantec Consulting Ltd. dated August ** Additional grant funding of $44,178 from Waterloo North Hydro and Union Gas is anticipated but hasn t been formally approved.

10 Appendix #1 - Summary of Recommended Energy/Water Saving Measures Impact of Implementation* Type Descriptions Estimated Annual Propane (L) Estimated Annual Natural Gas (m³) Estimated Annual Electricity (kwh) Estimated Annual Water (m³) Estimated GHG Reduction (Tonnes CO2e) Impact on Existing Facility Deficit Equivalent Cars Off The Road HVAC Demand Control Ventilation, Roof Top Renewal, Timer on Snack Bar Hood, Ventilation Renewal, Building Automation System, Internal Temperature Reduction, Furnace/Boiler Plant Renewals, Packaged Unit Replacement, Exhaust Hood Replacement, Chiller Replacement, High Efficiency HVAC Renewal, Seal Unused Hose Drying Tower, Resurfacing Water Preheat & Dehumidifier Replacement , , $1,325, Lighting Occupancy/Vacancy/Photo Sensor Installations, Ice Rink Lighting System Renewal, Interior Lighting Retrofit, Exterior Lighting Retrofit Addressable Lighting & Natural Lighting Controls 0-41,826 2,257, $234, Water Low-Flow Water Fixtures & Plumbing Fixture Replacement , $155,000 N/A All Summary of Recommended Energy/Water Saving Measures & Impact of Implementation Average Annual Utility Consumption Energy Assessment Reports CSAM Energy Assessment Reports Approved Grant Funding - Federation of Canadian Municipalities Green Municipal Fund** Project Contingency ,875 2,794,977 38, $1,715, ,772 2,036,891 25,432, ,480 8,130 Total Project Implementation *Information per energy and water assessment reports authored by Stantec Consulting Ltd. dated August ** Additional grant funding of $44,178 from Waterloo North Hydro and Union Gas is anticipated but hasn t been formally approved.

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