A1
ADMINISTRATIVE REPORT
Date: May 30, 1995
Dept. File No. Energy
TO: Vancouver City Council
FROM: Manager of Building Management
SUBJECT: 1995 Energy Conservation Projects
RECOMMENDATION
THAT Council approve the 1995 Energy Conservation projects outlined
in this report at a cost of $340,500, to be financed from a loan
from the Property Endowment Fund. Of this amount approximately
$71,000 is to be repaid upon receipt of BC Hydro's incentive rebate
under the Power Smart initiative, and the balance to be repaid to
the Property Endowment Fund from the resulting annual savings in
the Operating Budget.
GENERAL MANAGER'S COMMENTS
The General Manager of Corporate Services RECOMMENDS approval of
the foregoing.
COUNCIL POLICY
On July 12, 1990, Council approved in principle the policy, principles
and performance standards put forth by BC Hydro toward more efficient
energy use in buildings, and committed to participate in the Power Smart
Program within the limit of existing funding resources.
PURPOSE
The purpose of this report is to seek approval for P.E.F. financing to
carry out 1995 Energy Conservation Projects at various civic facilities,
including fire halls, non-revenue housing and Park Board facilities.
BACKGROUND
The City of Vancouver framed its commitment to energy conservation
almost two decades ago, laying the foundation for an energy management
program many years in advance of most western Canadian cities.As early
as 1977, the City of Vancouver recognized the potential importance and
opportunities that could result from energy conservation. Believing that
energy management practices afford relatively easy ways to reduce
operating costs without reducing output, the City implemented a broad
range of initiatives, both within its own operations and within the
community at large.
At the end of 1994 energy conservation projects were completed in
twenty-three civic facilities as approved by Council in 1992 under the
Power Smart Program. A loan from the Property Endowment Fund totalling
$1,020,940 financed these projects. A total of $446,918 was repaid to
the P.E.F. upon receipt of rebates from BC Hydro, with a residual
outstanding loan balance of $574,022, plus interest. These projects
have proven to be very successful. The calculated savings resulting
from these conservation activities are expected to reduce electrical and
natural gas consumption costs at these sites by more than $124,000
annually, resulting in a simple payback of 4.63 years. At the end of
the 1995 calendar year these operational savings will be used to begin
repayment of the outstanding loan to the Property Endowment Fund. The
City of Vancouver's efforts towards energy conservation were
subsequently recognized by BC Hydro when the City was awarded the 1994
Municipal Energy Efficiency Award for its energy conservation
initiatives over the 5 year period from 1989 through to 1994.
DISCUSSION
BC Hydro revises its rebate and incentive schedules every 6 months.
Recent trends have seen a reduction in BC Hydro rebates, with the
elimination of incentives for certain energy conservation strategies.
These reductions, along with the real possibility that the Power Smart
Building Improvement Program will be terminated in the near future,
compels the City to respond promptly in order to take advantage of the
existing rebate structure.
Lighting audits recently have been completed at various civic
facilities, and conservation strategies subsequently identified. The
measures for which this loan is requested focus on lighting upgrades in
fourteen fire halls, two non-revenue housing facilities, and various
Park Board facilities. Also included in this financing request is
$25,000 for the installation of various water conservation products for
installation on both potable and domestic hot water systems. The annual
savings resulting from these energy and water conservation measures are
calculated to be $54,000 at an estimated cost of $269,000 after rebates;
this results in a simple payback of 4.97 years.
All products to be installed under these initiatives will comply with
the most recently adopted energy standards in Canada and with the City
of Vancouver's own energy by-Laws, as well as having the approval of the
applicable regulatory bodies. The water conservation products have been
adopted for use by BC Hydro in their BC21 Power Smart campaign, and
include low-flow shower heads, kitchen and vanity faucet aerators, and
toilet reservoir water reducing attachments, to be installed on the
plumbing fixtures located in various civic facilities. These water
conserving products will reduce operational costs by reducing the energy
costs for domestic hot water heating, while at the same time lowering
the potable water consumption rates and decreasing effluent flows to
sewage treatment plants.
CONCLUSIONS
It is recommended that funding for the City portion of these projects be
provided by a loan from the Property Endowment Fund. Repayment will be
provided from contributions from Power Smart and from energy savings
realized in the Operating Budget.
* * * * *