Anchorage School District Destination 2020 Goal 6
Efficiencies 20% by 2020 Energy Efficiency Program Cyclic Bus Replacement
Purpose 1. Inform: - Achieve D2020 Goal 6 ‐ Efficiencies • •
20% by 2020 Energy Efficiency Plan Buses – Cyclic Replacement
2. Enable discussion and questions 3. Receive Board guidance 4. Receive Board approval to move forward on Phase 1 of 20% by 2020
Agenda 1. The 20% Reduction by 2020 Plan - General overview - Details and analysis - Phase 1
2. Cyclic Bus Replacement - Overview and analysis - Bus improvements
20% Reduction By 2020 – Overview 1. ASD annual energy cost: $15,000,000 - 20% = $3,000,000 – Targeted annual savings
2. Project types and projected efficiencies gained: - LED lights - High‐efficiency, condensing boilers - Retro‐commissioning
25% 20% 10%
LED Lighting
Before: 102 light fixtures
After: 18 light fixtures Much improved lighting and efficiency
High‐Efficiency Condensing Boilers
Condensing Boiler - 15% more efficient - 19 schools already transitioned
Cast Iron Boiler
Schools with H‐E Boilers NG Usage Before (Avg CCF)
NG Usage After (Avg CCF)
Percent Reduction
Bear Valley ES
48,021
28,455
37
College Gate ES
38,994
27,313
30
Girdwood K8*
22,605
16,497
27
Hanshew MS
114,306
86,617
24
Mountain View ES
48,308
28,455
41
Nunaka Valley ES
33,026
22,283
33
Spring Hill ES
41,347
26,958
35
Stellar
34,493
21,917
36
Tudor ES
40,526
26,992
33
Turnagain ES**
37,256
33,647
9
School
* Girdwood renovation resulted in doubling of building square footage ** 1 of 2 boiler rooms converted
20% Reduction By 2020 – Program 1. 2. 3. 4.
Multi‐year; 3 phases Mix of high‐return projects with slower return projects Financed (best‐available rate) $45,000,000 potential total investment -
Amounts informed by the expected return on investment – Break even point
Phase
Investment
Annual Cost* (projected)
Estimated Savings
Proposed Time Line
1
$10,300,000
2
$20,000,000
FY 2017/18
3
$14,700,000
FY 2018/19
$800,000
*Cost determined by loan amount and interest rate.
$889,740
FY 2016/17
20% Reduction By 2020 – Phase 1 1. 2. 3. 4.
FY 16/17: Requires Board and Assembly approval Estimated total investment: $10,300,000 Estimated annual cost (2% interest rate): $800,000 Break even for capital investment: Y10‐16*
Project Type
Schools Affected
Projected Savings
Boiler
Dimond HS, East HS, Begich MS, Muldoon ES
$141,095
LED Lighting
Chugiak HS, Dimond HS, Service HS, KCC, Muldoon ES, Ptarmigan ES
$398,148
Retro‐ Commissioning
Chugiak HS, Dimond HS, East HS, Service HS, KCC, Begich MS, Muldoon ES, Ptarmigan ES
$350,496
Total Projected Savings *Break even year informed by interest rate.
$889,740
Cost by Project (Estimated) School
Boiler
Chugiak HS Diamond HS
$575,000
East HS
$575,000
LED Lighting
Retro‐Commissioning
$1,425,000
$90,000
$1,275,000
$75,000 $95,000
Service HS
$1,275,000
$100,000
KCC
$1,100,000
$50,000
Begich MS
$350,000
Muldoon ES
$250,000
Ptarmigan ES Total
$1,750,000
$50,000 $675,000
$20,000
$675,000
$20,000
$6,425,000
$500,000
20% Reduction By 2020 – Finance 1. Options: Loan Source
Rate
First Year Cost
Annual Cost
B/E Year
Net Savings (25 Years)
AHFC
3.375
$204,745
$876,024
Y16
$8,048,000
Bank Loan
2‐2.5
*$874,152
*$824,148
*Y14
*$8,991,488
MOA Master Lease Plan
2.0
$810,377
$795,337
Y10
$9,423,109
*Numbers based on a 2.5% interest rate.
Board Discussion
Buses – 15 Year Cyclic Replacement Program
Buses – Overview 1. 123 buses (reducing to 121) in Pupil Transportation Fleet 2. Average fleet age: 14.1 years 3. CGCS: Median – 9; Lower Q – 6: Upper Q – 11.2 4. Largest purchases: 2003 (20), 2001 (13), 1999 (26), 1998 (11) 5. 94 buses 14 years or older (11 buses over 20 years old) 6. 18 buses (2013‐present) under 5‐year powertrain warranty 7. Average annual maintenance cost for 8 most expensive buses: $8,200 8. Cost to lease 8 – 84‐passenger buses: $117,000/year; 10 year lease 9. Bus improvements in the last 30 years: Efficiencies
Safety
20% fuel efficiency; ultra low diesel fuel
Higher seatbacks; more padding
Automatic Braking Systems
Electronic fuel control/management
Fire resistant seat coverings
Electronic Stability Control
6,000% reduction in particulate emissions
Fire resistant floorings
LED lighting
Electronic transmission
Air‐ride suspension
Improved reflective materials
Onboard diagnostics
1‐piece rim; tubeless tires
Outward opening doors
Pre‐trip recording
Automatic dropping chains
HD surveillance cameras
Buses – Cost Comparison & Analysis Existing Fleet ‐ Annual Maintenance Cost Comparison Years Purchased Average Annual Maintenance Cost/Bus Average Annual Repair Hours/Bus Cumulative 10 Year Maintenance Cost
Analysis
2007‐2016
2006‐1997
Difference
$1,478.30
$5,020.33
$3,542
17.97
20.74
2.77
$443,490
$4,769,316
$4,325,826
*Annual Fuel Cost Comparison Engine Type
MPG
Fuel Use (G)
Fuel Cost
9.5
7,150
$15,015
Last Generation Diesel
7.6
8,950
$18,776
($3,760)
6
11,325
$23,785
($8,770)
Action
Lease
Maintenance
Fuel Cost
Total Cost
Retain 8 Buses
$0
$65,600
$190,280
$255,880
Lease 8 Buses
*$127,000
**$2,400
$121,520
$250,920
Difference
$4960
* Includes electronics (GPS, radios) **Estimated servicing costs (filters, lubricants, etc.); Vehicles under warranty through Y3‐Y5
Lease costs offset by reduced fuel and maintenance costs
2.
Effective annual cost to lease 8 buses Y1 – Y5 is estimated to be less expensive than retaining higher‐cost vehicles
3.
Sustained leasing of 8 buses/year for 15 years results in a 7.5 year average fleet age
4.
Better technology, safer and more environmentally friendly
*Based on 1 bus operating 172 school days, 395 miles/day, $2.10/gallon diesel
Retain or Replace the 8 Most Expensive Buses
BL: Leasing is cost‐effective ‒
Difference
Contemporary Diesel 10 Years or Older
1.
Buses – Exterior Yellow Lights
Buses – Exterior Red Lights
Buses – Stop Arms
Buses – Tail Lights
Buses – Interior Lighting
Buses ‐ Seats
Buses – Service Doors
Old: Bi‐Fold Doors
New: Outward Opening Doors
Discussion