HomeMy WebLinkAboutOES 17-09
City o REPORT TO
' - EXECUTIVE COMMITTEE
PICKERING Report Number: OES 17-09
Date: May 11, 2009
From: Everett Buntsma
Director, Operations & Emergency Services
Subject: Corporate Energy Management Program
- Status Report on Current and Planned Initiatives
- File: A-1440
Recommendations:
1. That Report OES 17-09 from the Director, Operations & Emergency Services be
received for information,
2. That staff be directed to continue their efforts towards developing a long term
Corporate Energy Management Strategy;
3. That staff further be directed to continue their efforts towards implementation of
energy savings measures as identified in the audit of the Recreation Complex
undertaken by I.B. Storey & Associates;
4. That staff make arrangements to undertake additional energy audits at all main
City facilities to best determine future potential energy savings measures,
5. That the above works be undertaken with appropriate budget approvals as
required; and
6. That staff report back to Council on a regular basis to provide status updates on
progress.
Executive Summary:
Over the past several months, staff have been pursuing and monitoring various energy
management strategies, implementing energy reduction and efficiency projects,
participating in benchmarking projects with AMO and in general pursuing the principles
of sound energy management, environmental stewardship and sustainability.
Report OES 17-09 May 11, 2009
Subject: Corporate Energy Management Program Page 2
- Status Report on Current and Planned Initiatives
e9
The purpose of this report is to provide Council with a status update on activities and
planned future actions.
Financial Implications:
There are no direct financial implications resulting from this information report. All
projects highlighted are either already budgeted for, or will be the subject of future
budget approvals through the normal process.
Sustainability Implications:
All of the projects and initiatives highlighted in this report are aligned with the City's
high-level sustainability goals and objectives.
Background:
The following is a brief summary and explanation of staff initiatives to date:
1. LAS Municipal Energy Performance Benchmarking Project Pilot Phase Surveys
The purpose of the project is to develop a better understanding of the energy
performance of a wide range of municipal buildings and related organizational practices.
This information will be used by municipalities to identify opportunities for improvements
to their respective facilities, operating practices and organizational structures.
The pilot consists of surveys to be completed by each of the approximately 20
municipalities actively represented in the Advisory Group. The purpose of the pilot is to
"field test" the approach and survey content with a representative sample in advance of
launching the province-wide study of several hundred municipal buildings.
The Division Head, Facilities Operations is a member of the Municipal Energy
Management Benchmarking "Advisory Group" with the Local Authority Services Ltd.
(LAS).
The Terms of Reference and municipal membership of this group is attached as
Appendix "A".
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Subject: Corporate Energy Management Program Page 3
- Status Report on Current and Planned Initiatives
2. Energy Management Strategy
In 2008, the "Sustainable Pickering Challenge" was created to focus on a number of
broad initiatives including the "Corporate Challenge". The Corporate Challenge
provides an opportunity for the City to lead by example, which includes the development
of an Energy Management Strategy as a long term decision making tool while
implementing a number of corporate sustainability projects in the short to medium term.
The Sustainable Pickering program provides an overall framework within which the
Energy Management Strategy is to be developed. This framework begins with five key
sustainable objectives and corresponding priority areas within each one:
Objective 1: Healthy Environment
- Air
- Land
- Water
- Plants and Animals
Objective 2: Healthy Society
- Basic Needs
- Education/Literacy
- Community Safety/Preparedness
- Health/Well-being/Happiness
- Arts/Culture/Heritage
- Citizen Participation/Involvement
Objective 3: Healthy Economy
- Employment Opportunities
- Income Levels
- Innovation/Entrepreneurship
- Labour Participation Rates
- Business Attraction/Expansion
- Agriculture/The Rural Economy
Objective 4: Responsible Development
- Buildings/Structures
- Transportation System
- Neighbourhoods
- The City of Pickering
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Subject: Corporate Energy Management Program Page 4
- Status Report on Current and Planned Initiatives
Objective 5: Responsible Consumption
- Energy Use
- Food Consumption
- Water Use
- Waste Production/Diversion
The Energy Management Strategy is directly focused on "Energy Use" within the
Responsible Consumption objective; however it must also take into account the other
four objectives in order to be aligned with the overall framework.
Based on these considerations, the following energy management objectives are
recommended:
EMS Objective 1: Maximize energy efficiency
EMS Objective 2: Minimize GHG emissions
EMS Objective 3: Optimize energy usage to support the capacity of people to meet
their needs through existing and new operations and services
These EMS objectives align with the three lenses of economical, environmental, and
social sustainability (sustainability objectives 1, 2 & 3) while addressing the energy use
impact of future corporate development (objective 4) as well as existing operations
(objective 5).
All energy management initiatives must align with all three EMS objectives.
For instance, "maximize energy efficiency" may seem to align well with "minimize GHG
emissions" and "support capacity of people to meet their needs", however there are
many potential initiatives that do not. For example:
i) Changing street lights to more energy efficient lights may have little impact
on GHG emissions as it reduces mostly off-peak electricity usage which is
both low cost and mostly GHG emission-free.
ii) Changing streetlights to very efficient LED lights may impact pedestrian
safety due to lower lighting intensity, so it may not meet their safety needs.
One of the key issues with energy management is weighing the various factors through
the three lenses as articulated in the EMS Objectives to optimize decision-making.
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- Status Report on Current and Planned Initiatives
92 On this basis, Appendix "B" provides a current listing of key facilities and their
respective objectives. This listing and the resultant priorities will be monitored on an
ongoing basis by staff and resultant project initiatives will be brought forward for Council
consideration at the appropriate time as budgets permit.
3. Municipal Eco Challenge Fund
The City of Pickering was successful in receiving just over $60,000 in grant funding from
the Ministry of Energy & Infrastructure, which subsidized the Civic Complex
Humidification project just recently completed. This project involved the installation of a
new natural gas fired LP steam humidification system, producing low pressure steam
and injecting same into the air system utilizing high efficiency distribution heads.
This new system will result in a reduction of 7,000 cubic metres in natural gas
consumption and 2,500 KWH savings in electrical consumption on a perpetual basis.
On a go forward basis, staff made two additional grant applications to the Ministry, for
the following projects:
1. Replacement of three back up boilers at Recreation Complex $200,000
2. Full Plant Heat Recovery and Ice Storage Dehumidification $640,000
The Ministry of Energy and Infrastructure, by correspondence dated March 27, 2009,
has regretfully informed staff that the MECF program has been discontinued. Thus, the
October 10, 2008 round of applications, as noted above, will not be funded. This
decision followed a careful review of the Ministry's conservation programs in the context
of ensuring the most efficient use of capital dollars in these challenging fiscal times.
As a direct result of the above announcement, staff will not be recommending
implementation of the Full Plant Heat Recovery and Ice Storage Dehumidification
Project.
4. Recreation Complex Energy Audit
With the financial assistance of the Province, through AMO's Local Authority Services
(LAS), an energy audit of Pickering's Recreation Complex was undertaken in June 2008
by I.B. Storey.
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- Status Report on Current and Planned Initiatives
93
The audit identified nineteen (19) potential improvements, ranging in cost from as low
as $800 for the installation of individual light switches in the squash courts to as high as
$320,000 for a full plant heat recovery system at the Recreation Complex Arena. Each
of the nineteen projects were identified with individual payback periods in terms of cost
savings, and these periods ranged from 0.7 years to 21.7 years.
In accordance with the consultant's report, the total cost to implement all nineteen
projects was estimated at $635,655. This total project cost would be offset by
approximately $116,044 in annual energy savings, resulting in Greenhouse Gas
Emission Savings of 462 tonnes of C02 annually.
It should be noted that the above costs are based on industry benchmarks, and
escalating utility costs have not been factored. However, the consultant's report has
been utilized as a framework to determine priority projects to proceed with in the
proposed 2009 capital budget, as well as determining which projects to make
application for grant funding available from the Province.
A copy of the consultant's Executive Summary is attached as Appendix "C" to this
report.
As a result of the above, the following projects have been included in the draft 2009
Capital Program for Council consideration:
1. Replacement of three back up boilers $200,000
2. Upgrade of Energy Management System $30,000
Funding for the above projects will be provided through federal gas tax funding.
Staff will continue to monitor energy consumption and prepare a prioritized project
listing for future years as budget permits.
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94 - Status Report on Current and Planned Initiatives
5. Federal Gas Tax Funding
The City of Pickering has been successful in utilizing a significant portion of federal gas
tax funding towards energy efficient projects and retrofits throughout various facilities.
In 2008, the following projects were undertaken with the assistance of these funds:
1. Windows and Skylight Replacement, Civic Complex $10,000
2. Civic Complex Humidification Project $121,000
3. Dunbarton Pool Renovations $1,000,000
4. Replacement of West Shore Furnace $10,000
5. Recreation Complex Expansion $800,000
6. Skylight Replacement and Roof Repair, Recreation Complex $60,000
7. Replacement of Dry-O-Tron Controls, Recreation Complex Pool $5,000
8. Furnace Replacement, Greenwood Library $8,000
Planned projects for 2009, which will receive federal gas funding, are listed as follows:
1. Conversion of Axial Fan Motors to Variable Speed Drives, $70,000
Civic Complex
2. IT Server Room Air Conditioning $200,000
3. Install New Energy Efficient Windows, West Shore $10,000
4. Replacement of Air Handling Unit, Recreation Complex $100,000
5. Replacement of Three Back Up Boilers, Recreation Complex $200,000
6. Upgrade Energy Management System, Recreation Complex $30,000
7. Tinting Front Windows, Recreation Complex $16,000
8. Roofing Repairs, Central Library $100,000
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- Status Report on Current and Planned Initiatives
6. Civic Complex Lighting Retrofit
A retrofit of the existing lighting system at the Civic Complex was undertaken in
September, 2007 on the basis of a study undertaken by an energy consultant.
The lighting upgrade resulted in the installation of new T-8 lamps, electronic ballasts
and a computerized lighting control system for a total area of 8,000 square metres, for a
total cost of approximately $230,000.
This project alone has resulted in a reduction of energy consumption of approximately
$4,000 per month, with a payback period of approximately five years.
7. Interval Meter
With the funding assistance of AMO's Local Authority Services (LAS), a new interval
meter has been installed at the Recreation Complex.
This upgraded metre will allow time-of-use readings at 15 minute intervals, and will be
of great assistance in moving forward on a time-of-use plan with Veridian.
Attachments:
1. Appendix `A' LAS Terms of Reference and Municipal Membership
2. Appendix `B' Facility Priorities
3. Appendix 'C' I.B. Storey Executive Summary
Prepared By: Approved/Endorsed By:
Tony Prevedel Everett 66ntsma
Division Head, Facilities Operations Director, Operations & Emergency Services
TP:Ig
Copy: Chief Administrative Officer
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Subject: Corporate Energy Management Program Page 9
- Status Report on Current and Planned Initiatives
Recommended for the consideration
of Pickering City Council
Thomas J. Q ' n, RIDIVIR, III
Chief Administrative Officer
CORP0227-07/01 revised
ACH ME I..,.. FA„d f ; 6"'O R d I! 1 J / 7'
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LAS Local Au oRty erviceS Ltd.
i f 97
Municipal Energy Management Benchmarking "Advisory Group"
Terms of Reference
(Revised November 3, 2008)
Introduction
The Municipal Energy Management Benchmarking Project is made possible by the Ontario Municipal
Eco-Challenge Fund and will build on the successes of the LAS Audit++ program and other initiatives
aimed at improving energy management and reducing greenhouse gas emissions in the municipal sector.
For this project, benchmarking is defined as "a continuous improvement technique that compares and
analyses various energy use metrics and practices to determine best practices which are then emulated by
an organization". The work will focus on energy use performance, technical best practices and
management best practices and will recognize the various attributes, differences and limitations of
specific facilities to provide an objective basis for measurement and improvements.
The approach will be highly interactive in nature and include the participation of staff associated with
specific facilities as well as an "Advisory Group" of municipal staff who will work closely with LAS staff
and outside consultants to provide advice and steer the project.
Purpose / Obiectives
The Advisory Group will work with LAS staff and the project consultants for the following purposes:
• To provide guidance on the user level metrics that will be of value to municipal / facility staff for
energy management purposes
• To provide guidance on the types of facilities / equipment that will be of most value to study and
benchmark
• To advise on the criteria used to establish "peer groupings" of facilities
• To help identify, recruit and support target municipalities / facilities for participation
• To advise on any information technology requirements or enhancements to support the project
• To help engage any additional internal / external stakeholders who may be able to participate in
or otherwise support the project
Participants in the project will:
• Become more familiar with a wide range of energy management best practices and technologies
• Become familiar with the art & science of benchmarking
• Improve their understanding of energy management information systems
• Improve their understanding of energy / operating costs and planning abilities
• Network with municipal peers and other energy management specialists
Membership:
The Advisory Group will be chaired by LAS staff and all members will be volunteer Municipal Staff.
Members should have experience in one or more of the following areas including energy management,
facility management, engineering, accounting, working with utilities, climate change related activities.
Members will participate on a volunteer basis and should seek the appropriate approval of their supervisor
to devote time to this effort.
2-3 November 3, 2008
C1- MEN! 1; ( ~ 6 5__17_05
9 R ''LAS Local Au OMy Services Ltd.
Timelines and Level of Effort:
The first (one-day) meeting of the Advisory Group will take place on November 25, 2008 at the AMO
LAS office in Toronto (200 University Ave., Suite 801). Subsequent meetings will be scheduled 3-4
weeks in advance and may last from a couple of hours to an entire day. There will likely be another
meeting on December 10, then 3 or 4 meetings through 2009. In addition to scheduled meetings,
Advisory Group members may be requested to take on additional activities to support the project.
Membership Commitment:
Members of the Advisory Group are required to commit to the following principles:
1. 1 have received any necessary approvals (if needed - from Council or Administration) to support
my participation in the Advisory Group.
2. 1 understand that the success of this project depends on the commitment and teamwork of all
members and will endeavour to attend and participate in all scheduled meetings.
3. 1 understand that a number of facilities within my Municipality will be studied in the pilot phase
of this project and will support any necessary approvals.
4. I will support any approval processes necessary to allow the Project Team to collect and receive
any necessary physical or operational information for facilities in the Municipality I represent.
5. 1 will support any approval processes necessary to allow the Project Team to collect and receive
any necessary energy or fuel consumption information for facilities in the Municipality 1.
represent.
3-3 November 3, 2008
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ATTACHMENT # 2 „ TOREPORT#-QES- 17--cj
1 or) ~ of-....~Schedule `B'
Main Functional Key Criteria - Three lenses of sustainability, EMS Objectives
Category Sub-category
Economic - Energy Environmental - Social - Meeting
Efficiency - GHG needs of people
Cost/Benefits Emission
..Payback Reductions
Facilities Staff Facilities High Priority - High Priority - High Priority -
reduce energy reduce by 50% Enhance employee
usage by 50% health and productivity
Fire Facilities Low Priority - Low Priority - High Priority -
reduce energy reduce by 10% Responsiveness to
usage b 10% community
Rec. Facilities High Priority - High Priority - by Medium Priority -
reduce energy 30% attract more residents
usage b 30%
Libraries High Priority - High Priority - Medium Priority -
Reduce energy reduce by 30- attract more residents
usage b 30-50% 50%
New Facilities High Priority - LEED High Priority - High Priority - Indoor
Gold better than Reduce by air quality, sunlight,
existing etc.
Street Main Street Medium Priority - Low Priority - Medium Priority - light
Lights Lights lower savings off- low/no reduction sensors, enhance
peak hrs in off-peak hrs safety
Park/Walkway Medium Priority - Low Priority - Medium Priority - light
Lights lower savings off- low/no reduction sensors, enhance
peak hrs in off-peak hrs safety
Traffic Lights High Priority - 80- High Priority - Low Priority - no heat
90% energy savings 80-90% to melt wet snow on
with LED's reduction lights safety issue
Fleet Light Duty High Priority - 30%- High Priority - High Priority - driver
Vehicles 50% fuel economy 30-5,0% training - improved
savings reduction safety, less idling,
lead b example
Medium Duty Medium Priority - Medium Priority High Priority = driver
less fuel savings - less reduction training - improved
safety, less idling,
lead b example
Heavy Duty Low Priority - fuel Low Priority - High Priority - driver
efficiency part of little potential training - improved
purchasing checklist reduction safety, less idling,
lead b example
~OREPORT
#LLS
PICKERING RECREATION COMPLEX
LOCAL AUTHORITYSERV/CESLTD. IMPLEMENTAT/ONPLAN REPORT
EXECUTIVE SUMMARY
This report provides a recommended implementation of the Pickering Recreation Complex Audit
Report. The Audit identified 19 energy savings opportunities (Points of interest were also highlighted).
This report provides the City of Pickering with a project development structure, implementation plan,
incentives information and cash flow analysis. Budgets and estimates represent the highest level of
accuracy that can be achieved without further engineering study.
Appendix A Project Summary Report
Appendix B Cash Flow Illustration
This implementation strategy provides the preliminary information on which to base a project plan should
the City choose to move forward with the project. As the next step, further refinement of the costing and
detailed engineering is required prior to implementation. Opportunities were developed using industry
standard pricing. As part of the further investigation actual pricing will need to be obtained in order to
make effective decision-making.
Bundled Project Summary (Refer to implementation sections of this report for descriptions):
Energy Use Intensity (eKWh/ft2)
Pickering Recreation Complex - Current 32.4
i
Pickering Recreation Complex - Possible benchmark
with all bundled opportunities implemented 43.7
Total Cost $635,655
Simple Savings $116,044
Potential Incentives $344,921
Effective Simple Payback 2.9 years
GHG Emission Savings 462 t COa/yr
Escalating utility costs are not included in the above project summary.
This same project bundle, with 8% utility escalation, 6% debt interest on a five-year tern and potential
incentives, has a payback of 2.5 years. This has a 15 year positive cash flow of over $2.5 million.
%
I. B. Storey CONFIDENTIAL & PROPRIETARY L4S
~
Professional Energy Solutions PAGE 1 of 14
version 1.0 Local 4utlwno scr~uce,
PICKERING RECREATION COMPLEX
0) LOCAL AIUTHORITYSERVICES LTD. INIPLEMENTA TION PLAN REPORT
NOTICE REGARDING FINANCIAL ILLUSTRATIONS
This document contains financial illustrations based on the implementation of items that may be interrelated. Further
refinement of cash flow will be required prior to project implementation.
NOTICE REGARDING SAVINGS ESTIMATES
This document contains results from a.preliminary analysis only. While every effort has been made to accurately
calculate savings and cost, various assumptions have had to be made. It is critical that these assumptions be validated
prior to implementation. Without express written permission, any use of this report by a third party, or any reliance on
or decisions to be made based on it are the responsibility of such third party. I.B. Storey accepts no responsibility for
damages, if any, suffered by any third party as a result of decisions made or actions based on this report.
NOTICE REGARDING COST ESTIMATES
Cost estimates in this energy assessment are based on industry standard pricing, not local contractor or product pricing.
Local contractor pricing must be finalized prior to implementation of any measure.
I.B. Storey CONFIDENTIAL & PROPRIETARY
(U6~
Professional Energy Solutions PAGE 2 of 14
version 1.0 U al Authoety Smit CS