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CITY OF VANCOUVER ADMINISTRATIVE REPORT |
Date: |
November 30, 2004 | |
Author: |
David Cousins/
| |
Phone No.: |
604.871.6692 | |
RTS No.: |
04712 | |
CC File No.: |
3501 | |
Meeting Date: |
December 14, 2004 |
TO: |
Vancouver City Council |
FROM: |
Director of Facility Design and Management in consultation with the Sustainability Sponsor Group |
SUBJECT: |
Green House Gas Reduction - Phase 1 Implementation Plan |
RECOMMENDATION
THAT Council approve the Phase 1 Green House Gas Reduction Plan for Library Square, Vancouver Museum & Planetarium, Vancouver Firehalls and miscellaneous approved renovation projects, as set out in this report, and at a cost of $1,500,000; source of funding to be a loan from the Property Endowment Fund on terms acceptable to the Director of Finance, to be repaid with funds from BC Hydro Power Smart initiative and Natural Resources Canada (estimated at $200,000) and the remainder amount of $1,300,000 from operating savings in energy costs over a ten-year period.
GENERAL MANAGER'S COMMENTS
The General Manager of Corporate Services RECOMMENDS approval of the above, noting that projects are consistent with the City's sustainability strategy and provide a good business case with an economic return to the City.
COUNCIL POLICY
On April 23, 2002, Council adopted a Definition and Principles of Sustainability to guide, prioritize and improve the sustainability of City actions and operations.
On May 2, 2002, Council approved the motion proposed by the Federation of Canadian Municipalities to support the Canadian Government's ratification of the Kyoto Protocol.
On March 25, 2003, Council approved an emission reduction target of 20 percent from 1990 levels for the City of Vancouver, subject to evaluation of the implications of the target to ensure it is realistic. On this same date, Council created the Cool Vancouver Task Force and requested that it report back with a report on the components of a Green House Gas Reduction (GHG) Action Plan for both the corporation and the community.
On June 24, 2003, Council received the Cool Vancouver Task Force's Discussion Paper on Green House Gas Reduction Planning and approved a target of 6 percent below 1990 emissions levels for the City (community) as a whole. Council also approved a process to develop GHG Reduction Plans for both the City (Corporate) and the Community.
On December 2, 2003, Council:
· received and accepted the Corporate Climate Change Action Plan (CCAP) from the Cool Vancouver Task Force;
· affirmed and approved the 2010 target of a 20 percent reduction in Corporate GHG's;
· requested that Corporate Services and Engineering Services report back by January 2004 on the opportunities that Energy Performance Contracts may offer the City to reduce emissions from its buildings and facilities;
· approved the hiring of an Energy Projects Coordinator to assist in developing and implementing Energy Performance Contracts.
On February 24, 2004 Council directed staff to issue a Request for Proposals for Energy Performance Contracting in order to meet Council's mandated target of 20 percent reduction in GHG by 2010 for a report back on the Selection of Contractors.
PURPOSE
The purpose of this report is to seek approval of interim funding to finance the Phase 1 GHG Reduction Plan in Library Square, Vancouver Museum & Planetarium, Firehalls and miscellaneous approved renovation projects.
BACKGROUND
The City has committed to reducing its Corporate Greenhouse Gas emissions by 20 percent of 1990 levels by 2010 (9,000 tonne reduction). Achieving this goal within the next six years requires a significant reduction of emissions from civic facilities.
To achieve the GHG reduction targets, staff believe that a hybrid of City managed, self financed and Energy Performance Contracts (EPC) would be appropriate for City and Parks facilities. Accordingly the proposed Energy Reduction Plan has been divided into two project types:
· City administered, self funded minor projects
· EPC major projects
This report deals with the City administered, self funded minor projects as Phase 1 of the GHG Reduction Plan.
Concurrently staff are collecting data for the EPC and will be seeking Expressions of Interest and proposals shortly. This type of contract will be used to address the GHG reduction in the remaining City buildings.
An expedited process is being implemented because of BC Hydro's commitment to assisting and providing funding for organizations that pursue energy efficiency until March 2005. Although it would not be possible under any approach to have the retrofits completed by then, the City would be eligible for this significant Power Smart funding if it were to enter into contracts by this deadline.
DISCUSSION
As noted in the Background section, staff are proposing that the GHG reduction plan be undertaken in two project types: 1. City Administrated, Self Funded type whereby the City identifies the upgrades, funds low risk projects and manages the implementation work and, 2. Energy Performance Contracts whereby the City would partner with a Contractor requiring the contractor to audit the energy use, propose an upgrading program, finance, and implement the upgrade and guarantee the savings. Thus, the Contractor will be required to assume all of the technical and financial risks. These EPC projects will be reported back shortly once the Contractor is selected.
The proposed City administered, self funded projects are as follows:
1 Library Square
This project will replace failing infrastructure (lighting control panel and well as reinstate some existing infrastructure (ice storage). This will be achieved by replacing computer hardware as well as modifying the operation through software changes.
Estimated Cost = $200,000
Energy Saved = $29,000/year
Payback = 6.9 years
GHG Reduction: 100 tonne
Schedule: Complete August 2005
2 Vancouver Museum & Planetarium
The project will generally comprise of the retrofit measures identified in a Power Smart Energy Audit dated October 15, 2002.
Estimated Cost = $300,000
Energy Saved = $42,000/year
Payback = 7.1 years
GHG Reduction: 100 tonne
Schedule: Complete July 2005
3 Firehalls
Estimated Cost = $540,000
Energy Saved = $75,000/year
Payback = 7.2 years
GHG Reduction: 200 tonne
Schedule: Complete November 2005
4 Main Building - 2nd Floor East
Implement a lighting retrofit as a part of the renovations taking place on 2nd Floor of the Main Building (Human Resources). This will be considered as a pilot project to integrate sustainable design into ongoing renovation projects.
Estimated Cost = $35,000
Energy Saved = $5,000/year
Payback = 7.0 years
GHG Reduction = 5.0 tonne
Schedule: Complete March 2005
5 Miscellaneous Energy Efficiency Projects (Civic and Park Board Facilities)
Implement sustainable retrofits and energy efficiency projects as a part of ongoing renovations in City properties (possible projects include Gathering Place, 225 Main, Van City Building and a number of Community Centres). The marginal cost of the retrofit would fit into the established payback criteria for the City CCAP.
Estimated Cost = $425,000
Energy Saved = $60,000/year
Payback = 7.1 years
GHG Reduction = 100 tonne
Schedule: Complete December 2005
FINANCIAL IMPLICATIONS
Many of the Energy Efficiency projects undertaken by the City in the past have been financed internally with repayment of the loans being available through energy costs savings in the Operating Budget. It is recommended for these initiatives to be financed by the Property Endowment Fund (PEF). The PEF will be repaid from the energy savings within ten years. The total amount of financing being requested is $1,500,000 of which $200,000 will be funded from BC Hydro Power Smart initiatives and Natural Resources Canada.
A summary of savings is as follows:
CONCLUSION
The Staff recommend that City Council approve the Phase 1 GHG Reduction Plan as outlined in this report. The initiative is consistent with the City's sustainability strategy and will provide a beneficial economic return to the City. The second phase will be undertaken through EPC contracts.
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