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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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. . . Reduces Risk Exposure . . .
• Savings Risk
• Performance Risk
• Construction Risk
• Capacity Risk
• Continuity Risk
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. . . 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
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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
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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
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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.
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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!
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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
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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
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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
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CGAC – The Process
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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
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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
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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
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CGAC – Pre-Construction
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CGAC – During Construction
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CGAC – Post-Construction
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CGAC – Pool Mechanical Upgrades
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CGAC – HVAC System Upgrades
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CGAC – Facility Renewal Measures
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CGAC – Technical Challenges
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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
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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
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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
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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
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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
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CGAC Project Communications Used
Twitter
Facebook
City Web Site
Four Page Case Study
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CGAC Project Communications Used
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