HomeMy WebLinkAboutCRPS-07-014 - Heat Pump Project at the Kitchener Memorial AuditoriumJ
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Corporate Services
Report To: Members of Finance & Corporate Services Committee
Date of Meeting: January 29, 2007
Submitted By: L. Proulx, Director of Facilities Management
Prepared By: L. Proulx, Director of Facilities Management
Ward(s) Involved:
Date of Report: January 17, 2007
Report No.: CRPS: 07-014
Subject: Heat Pump Project at the Kitchener Memorial Auditorium
RECOMMENDATION:
That staff proceed to replace all the heat pumps in 2007 at the Kitchener Memorial Auditorium
with more efficient technology; and,
That the proposed financing package outlined in report CRPS: 07-014 be approved.
EXECUTIVE SUMMARY: N/A
BACKGROUND:
The Auditorium is now into its second half century of functional use serving the needs of the
public as an arena welcoming a lot of different venues in this versatile space. In the last decade,
Council made some decisions that will ensure the continued use of the building for many years
to come. In the late 1990s, the main ice floor was totally replaced. This now gives us the
reassurance that the floor will be functional for its refrigeration demands for another half century.
A substantial addition was also constructed at the turn of the century. Significant investment
was made to upgrade back of house mechanical and electrical equipment in the last ten years.
It is apparent that this building will be on our inventory for many years to come. This report will
deal with one more significant maintenance item.
REPORT:
Facilities Management have one HVAC tradesman assigned full time at the Auditorium
performing repairs and preventative maintenance. In the performance of his duties, he has
reported that the heat pumps are at or beyond their life expectancy and has requested that we
look at replacement of these units. There are nineteen heat pumps in operation in the building.
Heat pumps are substantial pieces of equipment that are connected to a low temperature water
loop, which adds or removes heat from each unit as required. These units provide cooling or
January 17, 2007
Page 2
heating to building space distributing hot or cool air via ductwork. At present, a condensing
boiler and evaporative fluid cooler add and remove heat from the loop as required.
We have two options to deal with the heat pumps. They can be changed on an as needed basis
into the future making use of the funds provided in building contingencies until all twenty are
replaced. There is another option that merits consideration. On the energy side, staff have
recommended that we go to a newer technology to achieve substantial savings in hydro into the
future. If we proceed to this better technology, we do not have the option of removing heat
pumps as they fail. We need to replace them all as one project because the loop temperature is
higher and this would not be compatible with the existing units. The source of heat for these
new heat pumps would not be the electric compressor but rather we would use the existing high
efficiency boiler that is presently under utilized due to the significant energy improvements we
have made in the building over time. This means that we would be using natural gas for source
of power as opposed to electricity. The estimated energy savings is $17,000 annually. The
premium to install these better units is estimated at $50,000 to $80,000 therefore we conclude
that we would achieve a payback of three to five years on the premium. All that needs to be
considered in the analysis of payback is the premium cost to go to higher quality units, since the
units need to be changed anyways.
Our staff have visited local schools that have converted to this technology recently. They
confirmed that the technology is sound and reliable.
Proposal:
Staff recommend that we replace all the heat pumps with the newer more efficient technology
which will achieve energy savings and will be more environmentally friendly in line with
Council's recent vision of the environment. We propose to take funds from existing accounts in
order to fund this endeavor. The funds we propose to redirect are for projects that can wait a
year to four years without major significance. We propose a repayment plan that will put the
funds back into these other accounts so that we can then undertake the projects for which the
funds have been allocated.
Find below the outline for specific details on this funding approach.
FINANCIAL IMPLICATIONS:
Funding Source
From End of 2006
526061 Auditorium Mtce 61,627.23
*526097 Replacement HVAC 13,494.00
*526088 Replacement -Exterior Components 38,367.44
*526100 Replacement -Plumbing 12,758.02
*526103 Replacement Site Components 3,271.73
Subtotal: $129,518.42
January 17, 2007
Page 3
From 2007 Capital
526061 Auditorium Mtce 100,000
*526097 Replacement - HVAC 66,500
*526100 Replacement -Plumbing 30,000
*526103 Replacement -Site Components 25,000
Subtotal: 221,500
Grand Total: 351,018.42
Please Note: The accounts that show an asterisk (*) are the accounts that need to be paid back.
Payback Amount: 189,391.19
Repavment Plan
2007 8,000
2008 17,000
2008 50,000
2009 18,000
2009 50,000
2010 19,000
2010 27,500
189,500
COMMUNICATIONS: N/A
CONCLUSION: N/A
L. Proulx, CET CMM III
Director of Facilities Management
LP/cr
from Energy Savings (Aud. Elec. Reductions)
from Energy Savings (Aud. Elec. Reductions)
from Auditorium Mtce 526061
from Auditorium Electrical Savings
from Auditorium Mtce 526061
from Auditorium Electrical Savings
from Auditorium Mtce 526061