Project Summary: Town Hall HVAC replacements

Project Summary

Priority: Critical Project Name: Town Hall HVAC replacements Project Number: 2-2-11401-310 CC1272 Submitted by: I. Leung, Director of Engineering and Parks

Executive Summary

With the failure of a second condensing unit at Town Hall this year, the Town will accelerate the replacement program for these units to manage cooling expectations for the summer months. The replacement of these units was initially proposed to be presented as part of 2024 budget deliberations, supported by the energy study that was completed for the building in March 2023. The building would see a GHG emission reduction by 53% and natural gas reduction of 59% as a result. Council approved this project for 2023 on June 20, 2023 (Council Resolution C-81-23).

Business problem and opportunity

Town Hall currently has five (5) condensing units that provide cooling within the space. These units are original to the building (over 25 years old) and have thus exceeded their recommended service life. One of the condensing units failed last year and a second unit has since failed in the building this year. As a result, it is believed that the subsequent units may see failures soon, especially with additional pressures being placed on these three units to maintain temperatures in the building this summer. The failed units are unable to be repaired as a short-term solution; the R-22 refrigerant that it uses was phased out in 2020 due to its high ozone depletion potential.

Proposed project objectives

The plan for the building was to install five new air source heat pump units (ASHP’s) to replace the aging condensers, as part of the 2024 budget. This was recommended in the Town Hall Energy Report, as these units have a higher efficiency and can also be used to provide heating in the winter. This added heating benefit would reduce the usage of the existing natural gas powered furnaces in the building during the cooler seasons. This project accelerates the HVAC unit replacement due to the current condenser unit failures.

Business risks

Delaying or deferring full or partial replacement of the Town Hall HVAC units may increase the total cost (estimated at $4,000 per unit if delayed to 2024) and place significant stress on the three working units, causing additional failures and an uncomfortable environment at Town Hall.

Proposed sources of funding

Casino revenue, offset by CleanBC Commercial Express incentive program rebates, if available

Costs and benefits

Recommendation

THAT the Committee recommend the 2023-2027 Financial Plan include Town Hall HVAC replacements in 2023 to be funded by Casino revenue.