Rejuvenating Community Infrastructure through
Rejuvenating Community Infrastructure through Performance Partnerships (CGAC Case Study) Presenter: Jim Fonger Client Solutions Developer Ameresco OSUM Conference – April 2015 Today’s Workshop • Context of Canada Games Aquatic Centre (CGAC) – An overview of the City of London’s Parks and Recreation assets and CGAC’s place within them • The need and plan to rejuvenate the facility and why it made sense to utilize the partnership in place with Ameresco • How the Ameresco Partnership was procured and its benefits to the City of London • Implementation of the project from planning to completion • Results to date • Questions ameresco.com london.ca/Aquatics City of London – Parks and Recreation Department • 475,000 – Approximate Population of City of London • $246,000,000 – Total replacement value of all Parks and Recreation assets • $170,000,000 (69% of total): – Pools: indoor outdoor, wading pools and spray pads – Arenas: 11 rinks with 18 ice pads and 2 outdoor rinks – Children’s theme park on 200 acres • Lifecycle maintenance of approx. $3-5 million annually spent on our assets • Three new projects between now and 2020 ameresco.com london.ca/Aquatics City of London – Parks and Recreation Assets • City has a 10 year Capital Lifecycle plan • All facilities are assessed and placed on an upgrade plan throughout the 10 year capital Lifecycle • Includes all pools, arenas, community centers, etc. • This capital budget is coordinated by our facility construction design department and work is arranged with the “owners” • Allows for ongoing funding for updating of facilities ameresco.com london.ca/Aquatics Canada Games Aquatic Centre • Opened in 1991, as London’s 1st Olympic-size indoor pool • Reached capacity immediately • Some upgrades occurred between 1991 and 1999 to support operations • Major renovations occurred in 2000 in preparation for the 2001 Summer Canada Games • By 2013 the original mechanical systems had reached the end of their Lifespan ameresco.com london.ca/Aquatics 6 7 City of London – CGAC • Facility is used by 1,100 people daily • Home to 6 competitive clubs • Variety of community programs such as swim lessons, aquafit, fit swims, recreational swims, etc. • The renovations had to meet a number of objectives: – Lifecycle system upgrades – Energy efficiency – Customer enhancements – More accessible and easier to maintain ameresco.com london.ca/Aquatics CGAC – The Need for Facility Renewal • The City had several objectives for this project – Reduce maintenance costs through life cycle renewal – systems had reached end of life – Lower operating costs through energy conservation – Increase reliability of systems critical to programming • Lights • Hydraulic Floor – Improve air quality throughout the building – Improve temperature and humidity control – Ensure compliance with current regulations • Bulkhead safety issues – Increase security and reduce theft from locker rooms • Enhance the customer experience including aesthetics ameresco.com london.ca/Aquatics CGAC – Challenges to Implement Required Renewal • Community and political buy-in • Financing • Shutdown - finding temporary homes for users • Capacity to implement the project • Confidence that it will get done on time and that the results will be as planned ameresco.com london.ca/Aquatics CGAC – How We Managed the Challenges • Important that we get input from users- multiple meetings with clubs and other customers • Ongoing communication: – Facility signage – Web site – Facebook and Twitter • Shutdown - finding temporary homes for programs • Capacity to implement the project • Confidence that it will get done on time and that the results will be as planned ameresco.com london.ca/Aquatics Why London accessed existing Partnership with Ameresco? • Provided required additional capacity • Single source responsibility assures accountability for the end results • Team approach to design allows municipal stakeholders needs to be addressed • Open book project accounting provides maximum flexibility • Flexible procurement process ensures complete satisfaction • Energy performance guarantee requirement • Accelerated implementation schedule that had to be achieved and Ameresco had proven its ability to deliver on time and on budget ameresco.com london.ca/Aquatics Ameresco’s Vision, Mission and Values VISION Energizing a sustainable world. MISSION Leading the quest to change the world as the trusted sustainability partner creating valued, single-sourced, efficient energy solutions delivered with passion, expertise, teamwork and a relentless focus on customer satisfaction. VALUES Ameresco’s values shape our culture and the way we conduct business. Our values are aligned with CARING about our stakeholders and are instrumental in guiding every aspect of our business. C Committed: Engaged, loyal and accountable to our stakeholders in achieving our shared goals. A Attitude: Demonstrating a can-do attitude. R Resourceful: Nothing is insurmountable. We do more with less. I Integrity: Empowered to do the right thing with consistent and high ethical standards in everything we do by embracing honesty, fairness, respect and safety. N Nimble: The flexibility to remain ahead of a changing environment by being entrepreneurial, passionate, open, innovative and smart. G Greatness: Leading the industry by pursuing excellence and innovative solutions, demonstrating the highest standards, leveraging experience, and unlocking the hidden potential to create a more efficient, sustainable world. Stakeholders: Customers, Employees, Investors, Partners, Community, Environment ameresco.com london.ca/Aquatics Ameresco Performance Partnership • Ameresco provides guaranteed capacity, capability, continuity, and financial leveraging solutions that focus on reducing facility energy requirements and carbon emissions while securing long- term sustainable energy supply and renewal Before Partnership During Partnership Utility Bills Utility Budget ameresco.com london.ca/Aquatics . . . Reduces Risk Exposure . . . • Savings Risk • Performance Risk • Construction Risk • Capacity Risk • Continuity Risk ameresco.com london.ca/Aquatics . . . while the Municipality Remains in Control • Throughout the entire implementation process the Municipality is in control of all decisions including: – Building and infrastructure asset selection – Measures to be included – When implementation begins – Product and sub-trade selection ameresco.com london.ca/Aquatics Performance Based Partnership • Utilize future operating savings to finance required capital improvements • Mechanism for developing, constructing and financing energy and water conservation projects along with standard “no payback” projects that transfers risk out of the Municipality • No/fewer upfront cost(s): improvements are paid for over time from on-going guaranteed energy and other operational savings ameresco.com london.ca/Aquatics Why this Solution is Attractive to Municipalities • Facilitates the implementation of more capital projects than would be achievable within existing capital budgets and tax base in order to address: – Health & safety risks and political dissatisfaction issues – Building system failure and facility closure resulting in lost revenues – Inefficient, carbon intense, and/or unreliable energy systems – Sub optimal building environments and comfort issues for occupants and users resulting in decreased demand – Tired and old looking facilities that reduce community pride – The limitation of future growth opportunities within the Municipality – Increased pressures to find enough human resources to execute projects – Pressure on taxpayers to fund operational improvements and renewal ameresco.com london.ca/Aquatics Ameresco & the City of London Partnership • Awards Ameresco Energy Partner Status in August 2005 in response to City RFQ • Approved investigation phase - $500k; implemented to uncover opportunities and install asset and energy management software in early 2006 • $50M of identified opportunities uncovered during investigation • $21.7 M earmarked for Ameresco implementation • CGAC project part of this priority program. ameresco.com london.ca/Aquatics Ameresco Success up to the End of 2013 Capital Cost Summary • Projects were projected to have capital costs of $8.8M • Final cost of the projects were $7.6M • $1.2M under budget! Savings Summary • Initial projected annual energy savings of $127k/yr. • Final annual energy savings are $137K/year • $10K more per year in annual savings! ameresco.com london.ca/Aquatics CGAC Project Financial Highlights Required Investments $3,700,000 Part 1 – 2013 Major Energy Measures + $2,650,000 Part 2 – 2014 Renewal and Aesthetic measures $6,350,000 Total Upset Limit of Project Approved by Council Initial Funding $5,565,000 Debentures to be issued by City & Capital Levy + $785,000 Gas Tax Funding $6,350,000 Total Required Funding ameresco.com london.ca/Aquatics CGAC Project Financial Highlights TOTAL PROJECT COST $6,350,000 Present Value of Energy Savings Stream * $2,643,000 Utility Incentives $168,000 Grant from GMF $304,800 Gas Tax Funding $785,000 Net Cost to London Tax-payers $2,449,400 * 4% annual utility Rate increase, 2% Discount Rate, 20 year Amortization ameresco.com london.ca/Aquatics CGAC Project Financial Highlights (con’t) REQUIRED LOAN/AMOUNT TO BE FINANCED $5,042,200 GMF Loan $3,048,000 City Issued Debenture $1,994,200 ameresco.com london.ca/Aquatics CGAC – The Process ameresco.com london.ca/Aquatics CGAC – The Planning Phase • Project Selection Process – Building condition assessment and energy study kicked off in 2011 – Collaborative effort that gathered input from all stake holders – Resulted in a “pick list” of measures • Financial Structuring – Project budget was based on the output of the study – Spanned 3 budget years – Included an option for an energy performance guarantee • Project Plan – Timelines were established – Contract was signed in June 2013 ameresco.com london.ca/Aquatics CGAC – The Design Phase • Pre-design – Validated the results of the study – Updated measures based on current technology • Design – Detailed engineering for all measures – Completed in 2 phases – Required coordination of both Ameresco resources and our supplier partners to execute an integrated design • Procurement – Both products and implementation contractors were selected based on Ameresco’s experience and input from the City ameresco.com london.ca/Aquatics CGAC – The Construction Phase • Construction & Site Supervision – Ameresco was the GC and constructor – We provided full time site supervision including health & safety responsibilities – Construction started in April 2014 – Facility opened on schedule on November 1, 2014 • Commissioning and project close-out – Commissioning is an on-going process during the 1st year of operation – Documentation & training provided for optimal operation • Validation of the results – 3 years of measurement and verification services ameresco.com london.ca/Aquatics CGAC – Pre-Construction ameresco.com london.ca/Aquatics 28 CGAC – During Construction ameresco.com london.ca/Aquatics CGAC – Post-Construction ameresco.com london.ca/Aquatics 30 CGAC – Pool Mechanical Upgrades ameresco.com london.ca/Aquatics CGAC – HVAC System Upgrades ameresco.com london.ca/Aquatics CGAC – Facility Renewal Measures ameresco.com london.ca/Aquatics CGAC – Technical Challenges ameresco.com london.ca/Aquatics CGAC – Project Costs CGAC Project Costs - Budget vs. Actual $6,350,000 $5,080,000 Operational $3,810,000 Architectural Lighting & Electrical $2,540,000 Bulkheads Pool Mechanical $1,270,000 HVAC $0 Construction Budget ameresco.com Actual Project Costs london.ca/Aquatics CGAC – The Bottom Line • Total base project cost was $6,350,000 – Included additional measures such as painting, flooring, and pool mechanical system upgrades • Total annual energy costs savings of $113,610 – Complete with energy performance guarantee • Anticipated incentive dollars for energy conservation was $168,000 – $10,000 from local natural gas utility – $158,000 from SaveOnEnergy • Additional facility renewal scope valued at $275,000 added from other budgets – Minimized costs because we were already on-site ameresco.com london.ca/Aquatics CGAC - Annual Energy Monitoring & Guarantee Energy Savings = Baseline – Post Retrofit ± Adjustments Energy Energy • Identifiable physical facts/independent variables – Weather – Billing/data period/missing data – Material and/or functional changes • Adjustments are reviewed/approved by both parties • Current utility rates as defined in contract are applied to both baseline and post retrofit energy numbers • Third party energy accounting software such as METRIX® or EnergyCap are used to track and report energy and cost savings ameresco.com london.ca/Aquatics CGAC – The Challenges • This project had some interesting challenges – Aggressive construction schedule – Budget constraints – Limitations of the existing architecture – Systems unique to public pools • Teamwork and communication were the keys to overcoming these challenges – Early planning and input from all stakeholders – Regular meetings throughout the process – Expertise from all members of the team ameresco.com london.ca/Aquatics CGAC - Project Results so Far – Energy Savings • Electrical usage readings for the first 4 months of operation (November 1 - February 28) show a significant change compared to the same 3 month period the previous year • Water consumption has dropped on average by 100m³ (26,000 USGAL) per month compared to the same period the previous year • Natural gas consumption is similar to that of previous years even with record low temperatures in January and February • Despite recent utility rate increases, the current average combined utility cost per day is tracking at approximately 19% lower than the pre-project average combined utility cost per day ameresco.com london.ca/Aquatics CGAC - Project Results so Far – Energy Savings CGAC Electrical Demand (kW) Pre-Construction Post Construction 300 250 200 150 100 50 0 November December ameresco.com January February london.ca/Aquatics CGAC - Project Results so Far – Energy Savings CGAC – Electrical Consumption (kWh) Pre Construction Post Construction 200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 November December ameresco.com January February london.ca/Aquatics CGAC Project Results so Far – User Experience Biggest Noticeable Improvement from Facility Users • Water clarity and filtration levels make for better water quality • Air Quality- UV and the improved air system and HVAC April 2015 November 2015 Reduction East side .46 .29 -.17 North side .37 .27 -.10 South Side .26 .21 -.6 Foyer/ Front desk .36 .14 -.22 Pool Location ameresco.com london.ca/Aquatics ameresco.com london.ca/Aquatics 43 CGAC Project Communications Used Twitter Facebook City Web Site Four Page Case Study ameresco.com london.ca/Aquatics CGAC Project Communications Used ameresco.com london.ca/Aquatics ameresco.com london.ca/Aquatics 46
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