Agenda Index City of Vancouver

ADMINISTRATIVE REPORT

TO:

Vancouver City Council

FROM:

General Manager of Engineering Services

SUBJECT:

New Chess Street Works Yard - LEEDTM Opportunity

 

RECOMMENDATION
Certified Rating

A. THAT Council authorize the General Manager of Engineering Services to implement LEEDTM sustainability practices into the design and construction of the new Engineering Works Yard, as detailed in this report, to achieve Certified rating, and approve up to $300,000 additional funding for this work; source of funds to be Capital Reserve repaid by the sale of Capital Asset land as identified in this report.

CONSIDERATION
Silver Rating

B. THAT, in addition to Recommendation A, Council authorize the General Manager of Engineering Services to achieve Silver rating for the Works Yard, as detailed in this report, and approve up to $400,000 additional funding for this work; source of funds to be Capital Reserve repaid by the sale of Capital Asset land as identified in this report.

C. THAT the General Manager of Engineering Services report back after completion of the project with a case study on the actual capital costs for LEEDTM and the projected operating savings.

GENERAL MANAGER'S COMMENTS

The General Manager of Engineering Services puts forward Recommendation A for approval for a Certified rating of the main works yard building and, in addition to Recommendation A, puts forward Consideration B and C for Silver rating of themain works yard building.

COUNCIL POLICY

The City of Vancouver has many policies which encourage sustainability practices such as energy efficiencies and improved building performance.

Specific to South East False Creek (SEFC), Council recently endorsed a process to develop LEEDTM as an environmental assessment method for buildings.

SUMMARY

Recent projects and initiatives of the City such as the Materials Lab and the development planning of SEFC have raised the awareness and interest in using a sustainable approach to building design. While the new works yard is not within the boundaries of the SEFC area, it does present an opportunity to begin incorporating green building design elements. In order to take advantage of the timing, a decision to proceed is needed now to allow integration with the design which is currently underway.

As the City prepares to move toward sustainability requirements in SEFC and the City at large, timing for the new yard could not be better. This is an opportunity to show the City's commitment to sustainability. The City will gain direct experience with green building design and LEEDTM (the U.S. Green Building Council's assessment method: "Leadership in Energy and Environmental Design").

The area with the greatest potential for meaningful features would be the main administration and the Parking Operations buildings. These two buildings would have the highest water use, highest energy use and highest staff occupancy making them prime candidates for green building design. Achieving LEEDTM Certified, the lowest of the four categories (certified, silver, gold, and platinum) could be done primarily through energy initiatives for a cost of approximately $300,000. To achieve Silver could incur additional costs of up to $200,000 to $400,000. The total cost for Silver represents about an 8 to 12% premium over the capital cost of the Main and Parking buildings and would have reduced operating costs.

It is recommended to achieve a Certified rating with consideration for achieving Silver. Funding of up to $700,000 from the Capital Reserve is proposed as detailed in the report. Green building design has benefits in the areas of stormwater management, water efficiency, waste reduction, energy efficiency, material selection and indoor environmental quality. If Council choses Silver, the works yard can be an example of the City's strong commitment to sustainability.

PURPOSE

This report seeks authorization to implement sustainable initiatives into the new works yard and provide a source of funds for this work. A base level of LEEDTM Certified is put forward with consideration for LEEDTM Silver rating.

BACKGROUND

The new engineering works yard is part of the current 2000 - 2002 Capital Plan. The work leading up to this plan did not envisage incorporating any unusual elements aimed at improving energy utilization or environmental impacts (sustainability). The preliminary design and budget have been based on industry standard practice and code requirements (including the Vancouver energy code). The new yard is currently in the design development stage working toward a development permit submission with construction scheduled to commence early next year.

In August, Council approved a two-part process for SEFC to develop an environmental assessment method for buildings: first consider LEEDTM (the U.S. Green Building Council's assessment method: "Leadership in Energy and Environmental Design") for SEFC and then assess LEEDTM for broader use across the City. This work is currently in progress with an anticipated report back in April 2002. The likely recommendation will be to have all new City buildings designed to attain a LEEDTM Silver rating.

DISCUSSION

Recent projects and initiatives of the City such as the Materials Lab and the development planning of SEFC have raised the awareness and interest in using a sustainable approach to building design. Directions from past initiatives such as Clouds of Change and energy by-laws along with current initiatives in SEFC have put Council in a leadership position in promoting sustainable development. There is significant interest from both the public and Council to continue pursuing and expanding opportunities. For building design, indications are that LEEDTM Silver is the desired level to achieve.

While the new works yard is not within the boundaries of the SEFC area, it does raise the question and presents an opportunity. As the City prepares to move toward sustainability requirements in SEFC and the City at large, timing for the new yard could not be better. This is an opportunity to show the City's commitment to sustainability, and is also an opportunity to put it to use. Through this project, the City will gain direct practical experience with green building design and implementing LEEDTM .

Design work for the new yard is currently underway which presents a timely opportunity to begin incorporating significant sustainability features. However, a decision to proceed is needed now or the opportunity will be lost. Delaying the yard design is not an option as adesign contract is underway, operations staff are actively involved and have generated positive momentum for the project, and the existing Cambie yard is in extremely poor condition with only minimal required maintenance taking place. Additionally, Cambie Yard lands are part of the SEFC development which requires the yard to be shut down to allow a remediation plan to be put in place prior to any development.

The LEEDTM assessment is designed for commercial, institutional, and high-rise residential and is not specifically designed to apply to industrial sites; however, the majority of the principles still apply. The area of the new yard with the greatest potential for meaningful features would be the main administration and shop building. This building would have the highest water use with all the locker and shower rooms and main washrooms, highest energy use and highest staff occupancy. It is therefore a prime candidate for stormwater management, water efficiency, waste reduction, energy efficiency, material selection and indoor environmental quality. It is proposed to focus green building design on the main yard building, but also to incorporate features such as storm water management and energy efficiencies into the Parking Operations building and others where feasible. It is also proposed to have an engineering staff person write the exam for LEEDTM Professional Accreditation.

The new yard as currently budgeted has strived to keep the buildings basic and keep costs to a minimum. The existing budget anticipated some recycled content and energy and water efficiencies. It is expected that if we proceed with the plans and budget as currently set out, the main building would likely be rated just short of LEEDTM Certified, the lowest of the four categories (certified, silver, gold, and platinum). Achieving Certified could be done primarily through energy initiatives for a cost of approximately $300,000. This represents about 5% of the $6 million cost of the main building and the Parking Operations building. To achieve Silver could incur additional costs of $200,000 to $400,000. The total cost for Silver represents about an 8 to 12% premium. The cost premium for the works yard is anticipated to be higher than would be expected for typical office or commercial buildings because of the low base cost for the yard. The above costs are rough estimates given the early nature of the design and may be less, depending on the specific measures undertaken. It should be noted that the cost premiums vary from building to building and site to site. The amount of any premium depends greatly on the base budget, type of facility and specifics of the site. As well, savings could be realized in an integrated design approach where additional funds spent on one component could result in savings on another. Once the works yard is complete, staff will report back on the actual capital cost for LEEDTM and the projected operating savings.

BENEFITS OF LEEDTM

The benefits of implementing green building initiatives must be looked at from a long term perspective. Initial capital costs are only a portion of the total cost of a project. A buildingowner generally spends three and a half times more for operating and maintenance than for construction and 50 times more to pay the people that will work in the facility (over its useful life) than was spent on construction1 The US Green Building Council reports an expected 32% decreases in operating costs, 30% decrease in energy costs and 10% decrease in water consumption for a LEEDTM Silver building. For the main works yard building, the benefits occur in several areas.

At the Certified level, energy savings will result from both the heating and lighting. Payback is anticipated to be in the five to ten year range depending on the detailed design and energy prices. Further operating and maintenance savings can be expected through specific commissioning and monitoring requirements under LEEDTM.

Other less quantifiable benefits accrue at the Silver level such as initiatives for water efficiencies and wastewater reduction. By cutting down on water consumption, there are reduced water billings and reduced demands on the water system. Reductions in this area also translate to reduced waste water discharged to the system and ultimately reduced loading on the treatment plant.

Stormwater management is another area of opportunity. There are opportunities to use stormwater detention onsite with reuse for irrigation and vehicle prewash. This cuts down on potable water use and stormwater discharges.

Indoor environmental quality is an area of LEEDTM aimed at employee health and well being. This covers air quality, ventilation and lighting. While the measurable benefits of this are hard to quantify, studies at the US Post Office and West Bend Mutual Insurance have reported 6 to 16% increases in productivity. As well, other studies have reported reductions in absenteeism.

It is recommended that the City achieve a minimum Certified rating for the main works yard building. Sustainability is an area of growing concern both locally and internationally. With this project, there is an opportunity to go beyond a minimum level and make a more substantial impact. A Silver rating is put forward for consideration.

FINANCIAL IMPLICATIONS

The cost to achieve LEEDTM Certified is anticipated to be up to $300,000 and an additional $200,000 to $400,000 to achieve Silver. It is proposed to use the Capital Reserve to fund up to $700,000 to be applied to sustainable elements for the new yard. City owned property at the corner of Beatty and Georgia (696 Beatty Street, Lot D, Block 49, District Lot 541 Plan LMP 42064) is a Capital Asset being negotiated for sale. This was formerly street for theold Georgia Viaduct abutment and is surplus to Engineering Services' needs. It is proposed that proceeds from this sale be allocated to refund the Capital Reserve. Details of the sale will be reported back. It is important to note that while a number of elements have upfront capital costs, there is every likelihood that reduced operating costs will be achieved with life cycle payback. Also, some of the environmental items are part of a Provincial / Federal Infrastructure grant application.

As reported earlier, there is a budget shortfall of approximately $800,000 for the works yard. Designing to Certified or Silver does not change this. This short fall is being addressed as previously reported though use of construction management and a number of cost saving proposals and value reviews including things such as material selection, foundation design, and efficiencies in building and site layout.

SUSTAINABILITY

The City has implemented a number of sustainable policies and practices over the years from small things such as rain barrels and composters to more significant items such as the SEFC policies, the regional Liquid Waste Management Plan, the Transportation Plan and following the regional Solid Waste Management Plan.

With the construction of the new works yard, the City has an opportunity to once again demonstrate its forward thinking and lead by example. This project has opportunities to demonstrate sustainable features in all areas of the LEEDTM evaluation (site development, water efficiency, energy and atmosphere, materials & resources, indoor environmental quality and innovation). As well, the experience gained in applying LEEDTM in the works yard will help in determining applications for the rest of the City.

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1 The Economic Case for "High Performance Buildings" by Scott Johnson, CH2MHILL