Energy Conservation Audit

Clarendon Hotel and Spa

401 West Clarendon Avenue Phoenix, AZ 85013

July, 2014

Executive Summary 1 Introduction 2 General Facility Overview 3 Energy Use Profile 4 Occupancy and Phoenix Weather Patterns 5 Electric Usage as it Relates to Occupancy 6 Natural Gas Usage as it Relates to Occupancy 6 Energy Star Score and EUI Calculation 7-8

Recommended Energy Conservation Measures

9

ECM-1 Energy Awareness and Incentive Program

9

ECM-2 Restaurant Lighting Retrofits 10 ECM-3 Back of House Lighting Retrofits 11 ECM-4 Front of House Lighting Retrofits 12 ECM-5 Parking Canopy Lighting Retrofits 13 ECM-6 Parking Canopy Lighting Retrofits 14 ECM-7 Ozone Laundry System 15 ECM-8 Liquid Pool Cover 16

Total of All ECM’s 16 Next Steps 17

1

EXECUTIVE SUMMARY Automated Energy performed an energy audit at the Clarendon Hotel and Spa in May, 2014. The objective of this study was to identify opportunities to reduce energy usage under the Arizona Public Service Energy Audit Incentive Program. Overall, the level of efficiency at the hotel is excellent as Ownership, management and engineering have made great strides to reduce energy consumption. There were few remaining major opportunities remaining identified where significant energy reductions were financially viable.

Many of the Energy Conservation Measures (ECMs) identified include simple operational and low-

cost improvements such as Lighting Retrofits and Employee Energy Awareness training. Some of

the capital projects include potential Guestroom Energy Management Systems and an Ozone

Laundry System installation. The list of recommended projects is shown below:

The annual savings from implementing the recommended measures is estimated at $13,552

accounting for 15% of total energy spend with a simple payback of 2.57 years (1.53 years if

ECM – 6 is discounted). Please note; the implementation cost and simple payback do not take

into account utility rebates with the exception of the Ozone Laundry which has been confirmed.

These rebates can reduce cost and payback by as much as 20%-50%.

Category Measure Service Group Units Saved$/Year

Saved

Incentive /

Rebate

Opportunities

Implementatio

n Cost (Less

Incentive /

Rebates)

Additional

Operating +

Maintenance

Cost

Simple

Payback

(Years)

5-Year

ROIComments

Awareness

Electric 26,440 2,127$

Natural Gas 434 415$

Lighting Restaurant Lighting RetrofitsElectric 25,048 2,015$ 2,055$ 1.0 390%

BOH Lighting Retrofits Electric 2,792 225$ 423$ 1.9 166%

FOH Lighting Retrofits Electric 13,076 1,052$ 1,485$ 1.4 254%

Parking Canopy Lighting

RetrofitsElectric 1,717 138$ 336$ 2.4 106%

HVACR Guest Room EMS Electric 17,626 1,418$ 10,500$ 7.4 -32%

Misc.Ozone Laundry System Natural Gas 5,551 5,307$ 6,650$ 6,650$ 1.3 299%

Liquid Pool Cover Natural Gas 991 942$ 300$ 310$ 0.5 148%

Totals (If All Measures Implemented)

Total Electric 86,699 kWh 6,976$ 10% of Total Usage

Total Gas 6,976 therms 6,664$ 32% of Total Usage

Total Water 0 kgal -$ 0% of Total Usage

Total Overall Savings 13,640$ 15% of Total Energy Spend

Roll Out Hotel Staff Energy

Awareness and Incentive

Program

Clarendon Hotel Energy Conservation Measures

2,500$ 1,000$ 2.2 125%

2

Introduction

This report is the result of an energy survey performed by Automated Energy for Ben Bethel, Owner and General Manager at the Clarendon Hotel. Information utilized in the report was collected during a site survey performed by Charles Bevington, CEM®, PMP, on May 13, 2014, and supplemented with information provided by Clarendon staff and retrieved from the hotel’s utility information. The audit was requested as part of Arizona Public Service Energy Audit Incentive Program. Savings opportunities referenced in this report are referred to as Energy Conservation Measures (ECM’s). Analyses performed in this report are based on the data provided by the hotel directly and/or from the Utility providers. The report begins with a brief description of the facility. It then reviews the historical energy use and cost profile of the building. Recommended energy projects are then presented, with a summary of the economic analysis for each project. We would like to thank the Clarendon staff for their valuable assistance during the course of this study.

3

General Facility Overview

The Clarendon Hotel is comprised of 105 guest rooms within the main building, including several meeting rooms comprising over 1,600 ft2. The pool deck and the rooftop patio are also available for meetings and total approximately 2,000 ft2. The Building square footage is approximately 87,150 ft2 with surface parking totaling over 35,000ft2. Occupancy at the facility averaged 65% for the year ending in April, 2014. Built in 1972, the structure is 42 years old and has undergone extensive additions since opening. Renovations continue on an ongoing basis. General appearance of the property is excellent. Common areas were found to be comfortable with adequate cooling and illumination. The hotel also includes a three meal restaurant with lobby lounge. Other amenities include a fitness center and full service snack and beverage service throughout the property. Space conditioning is provided through a series of Fujitsu mini-split systems and a few small traditional split systems. Mini-split systems are extremely efficient compared to their predecessors. Control of the systems rests locally with the guests. All laundry for the hotel is done on site. Below is a breakdown of the typical uses of electricity in a hospitality application. Where data specific to the Clarendon Hotel was not available, these percentages were applied to estimate saving opportunities.

Typical Lodging Use Energy Breakdown

Electric Natural Gas

Source: E SOURCE, data from U.S. Energy Information Administration

4

Energy Use Profile

An important step in determining potential savings is having an understanding of how the

energy is currently being used and the cost associated with this use. Once this is determined,

areas for reduction can be identified and targeted for detailed evaluation.

The Clarendon Hotel uses electricity and natural gas as sources of energy. Electricity is used

for space conditioning and lighting. Natural Gas is used primarily for domestic water heating as

well as supplying the kitchens. Average electricity and natural gas rates for the year ending

April, 2014 were used in these savings calculations.

Energy Cost Relationship

The disparity in the consumption of fuels is due to several factors. The largest factor is the

warm climate in the Phoenix area which has a very short heating season. Another factor is the

use of electric heat for that short heating season.

5

Occupancy

Occupancy at the Clarendon Hotel remains fairly consistent throughout the calendar year.

There are expected declines at the height of the summer season and around the holidays. The

timing of the declines are to be expected for a property located in a desert climate that has a

significant business clientele.

Average High and Low Temperatures in the Phoenix Area

As indicated in the charts above, Occupancy trends in the inverse to high temperatures, with the

exception of the Holiday season.

6

Electric Usage as it relates to Occupancy

As indicated in the chart above, kWh consumption is affected by factors other than occupancy.

Logically, consumption will increase as occupancy increases. However, the inverse is not the

case. While consumption will be lower, there is not a direct relationship. Public areas must

remain lighted and conditioned regardless of occupancy. The relationship above indicates the

bulk of the electric consumption is related to seasonal cooling needs in guest rooms and

common areas such as the lobby and the restaurant.

Natural Gas Usage as it relates to Occupancy

Natural gas consumption follows occupancy more closely than electric consumption, but is still

not a direct relationship. This is due to the fact that the primary use of natural gas at Clarendon

Hotel is domestic water heating for guest rooms. Deviations in the relationship in the heating

season are due to the need to maintain pool temperature and other seasonal uses such as

common area space conditioning.

0

50

100

150

200

Natural Gas vs. Occupancy

% Occupancy Therms

7

Energy Star Comparison

The Clarendon Hotel’s current Energy Star® as measured by Portfolio Manager is a 95 out of

100. This is exceptional in terms of the baseline data the EPA uses for benchmarking. Fine

tuning and absolute verification of data inputs will be necessary prior to applying for Energy Star

Certification.

8

Energy Utilization Calculations

The following utility data was used in the calculations to calculate the Energy Star Score.

If all recommended Energy Conservation Measures are implemented, the EUI and PAR

calculations will change as indicated below:

The improvement in Energy Utilization Index is approximately 20%. However, this is not a direct

correlate to Energy Star Scores which are based on Commercial Building Energy Consumption

Survey (CBECS) data.

Clarendon Hotel

Units UsagekBTU

(Converted)Peak kW Cost Unit/Cost

$/square

footUsage/sq ft Units $/Yr PAR

Usage/Yr

PARUnits

Electric kWh 881,320 3,007,945 158.22 70,909$ $0.080 $0.87 10.78 kBTU $675 8,393.52 kBTU

Nat Gas Therms 21,688 2,168,800 Min kW 20,739$ $0.95 $0.25 0.27 kBTU $198 206.55 Therms

Water CCF 16,453 46.31 147,250$ $8.95 $1.80 0.20 CCF $1,402 156.70 CCF

TOTALS kBTU 5,176,745 91,648$ $2.92 11.25 $2,275.22

/sf/yr kBTU/Sq Ft /yr PAR

Site Info Max Demand EUI

Room 105 1.94 63.34 $1.12

Conditioned Sq Ft 81735 W/sq Ft /sf/yr

Occupancy 65% Min Demand (E&G Only

0.57

W/sq Ft

Per Square Foot Per Avail Room

Clarendon Hotel

Units UsagekBTU

(Converted)Peak kW Cost Unit/Cost

$/square

footUsage/sq ft Units $/Yr PAR

Usage/Yr

PARUnits

Electric kWh 794,651 2,712,144 158.22 63,933$ $0.08 $0.78 9.72 kBTU $609 7,568.10 kBTU

Nat Gas Therms 14,712 1,471,200 Min kW 13,763$ $0.95 $0.17 0.18 kBTU $131 140.11 Therms

Water CCF 41,365 46.31 -$ $0.00 $0.00 0.51 CCF $0 393.95 CCF

TOTALS kBTU 4,183,344 77,696$ $0.95 10.41 $739.96

/sf/yr kBTU/Sq Ft /yr PAR

Site Info Max Demand EUI

Room 105 1.94 51.18 $0.95

Conditioned Sq Ft 81735 W/sq Ft /sf/yr

Occupancy 65% Min Demand (E&G Only

0.57

W/sq Ft

Per Square Foot Per Avail Room

9

RECOMMENDED ENERGY CONSERVATION MEASURES

These 8 Energy Conservation Measures represent the potential to save approximately 15% of

the hotel’s current energy bills. The economics presented here are conservative preliminary

estimates and do not include contingency allowances for either costs or savings. The findings

should be used to identify steps that should be considered in working to achieve conservation

objectives. Any available incentives or utility rebates are also included based on estimates

provided by APS. There is no certainty of their availability due to the overall nature of the

incentive and rebate process.

A summary of the projects is included in the table below. There may be multiple modifications

within each of the ECM’s due to interrelated scope elements in terms of savings and costs. As

a result, we highly recommend that the hotel approach each ECM as a whole, rather than

focusing on individual elements, so that returns can be maximized.

ECM-1- Energy Awareness and Incentive Program

The Clarendon Hotel would benefit from an Associate Energy Awareness. With the younger,

more environmentally aware clientele, guest participation should be included. Incentives for

employees could include cash awards at a departmental level for energy conservation. Late

shift employees should have procedures outlined as part of their duties to reduce energy waste.

To enhance this program, educational collateral such as an energy consumption tracking board

could be helpful.

Further engagement of the associates outside of the hotel has also proven to be effective. The

EPA has a residential version of the Energy Star program called the Home Energy Yardstick.

https://www.energystar.gov/index.cfm?fuseaction=HOME_ENERGY_YARDSTICK.showGetStar

ted&s=mega .

Encouraging associates to save energy at home has proven to translate directly to energy

savings in the workplace. Adding such a program to the current energy program should yield

positive results.

An Energy Awareness Committee, championed by a senior manager, with a representative from

each department of the hotel to lead conservation efforts has proven to be helpful in promoting

conservation throughout the property.

Category Measure Service Group Units Saved$/Year

Saved

Incentive /

Rebate

Opportunities

Implementatio

n Cost (Less

Incentive /

Rebates)

Additional

Operating +

Maintenance

Cost

Simple

Payback

(Years)

5-Year

ROIComments

Awareness

Electric 26,440 2,127$

Natural Gas 434 415$

Roll Out Hotel Staff Energy

Awareness and Incentive

Program

2,500$ 1,000$ 2.2 125%

10

ECM – 2 Restaurant Lighting Retrofits

The Gallo Blanco restaurant has a significant opportunity to reduce energy through lighting

retrofits. Most of the lighting in the dining room is incandescent, some stylized, while the kitchen

and service areas use linear fluorescent lighting. Upgrading to LED in both areas will show a

simple payback of 1 year before any available rebates are factored in.

Gallo Blanco Restaurant

Careful consultation with the restaurant management and ownership should be taken to

maintain the desired atmosphere and aesthetics. Improvements in LED technology in the areas

of color rendering and temperature have made this possible with most decorative lamps.

Category Measure Service Group Units Saved$/Year

Saved

Incentive /

Rebate

Opportunities

Implementatio

n Cost (Less

Incentive /

Rebates)

Additional

Operating +

Maintenance

Cost

Simple

Payback

(Years)

5-Year

ROIComments

Lighting Restaurant Lighting RetrofitsElectric 25,048 2,015$ 2,055$ 1.0 390%

11

ECM – 3 – Back of House Lighting Retrofits

The Clarendon has limited Back of House space. As a result, energy efficient lighting has not

been a major concern. There are opportunities in these areas that can achieve savings with low

cost options and no impact to the guest experience. Caution needs to be taken to ensure

sufficient lighting levels in the appropriate areas.

ASHRAE Lighting Levels for Hotel Applications

Appropriate lighting can be determined with a light meter available at any hardware store. These

are recommendations, not requirements. Appropriate lighting levels should be maintained to

ensure associate comfort and safety in the back of the house.

LED T8 vs. Fluorescent T8

Rebates listed for a BOH lighting retrofit are calculated as a Custom Program with the incentive

based on kWh reduction. APS prescriptive rebates do not cover T8 to T8 retrofits, regardless of

lamp type.

Category Measure Service Group Units Saved$/Year

Saved

Incentive /

Rebate

Opportunities

Implementatio

n Cost (Less

Incentive /

Rebates)

Additional

Operating +

Maintenance

Cost

Simple

Payback

(Years)

5-Year

ROIComments

Lighting BOH Lighting Retrofits Electric 2,792 225$ 423$ 1.9 166%

Building Type Space Type

Maintained Average

Illuminance at

working level (lux)

Measurement (working) Height

(1 Meter = 3.3 feet)

Hotels Restaurant/Dining Room 100 at 0.8M

Kitchen 500 at 0.8M

Buffet 100 at 0.8M

Service Areas 50 at 0.0M

12

ECM – 4 – Front of House Lighting Retrofits

Front of House lighting is a combination of incandescent and linear fluorescent lamps. The

Clarendon staff is diligent about making sure spaces which are not in use are not lit

unnecessarily. However, areas such as the lobby which require 24 hour illumination present

significant opportunities.

Clarendon Hotel Lobby

The natural light available through the glass doors is also a source of energy saving

opportunities. Daylight harvesting devices should be investigated after any lobby lighting retrofit

is completed.

As with lighting retrofits in Gallo Blanco, careful consideration needs to be taken is selecting

proper lamps based on color rendering and temperature.

Category Measure Service Group Units Saved$/Year

Saved

Incentive /

Rebate

Opportunities

Implementatio

n Cost (Less

Incentive /

Rebates)

Additional

Operating +

Maintenance

Cost

Simple

Payback

(Years)

5-Year

ROIComments

Lighting FOH Lighting Retrofits Electric 13,076 1,052$ 1,485$ 1.4 254%

13

ECM – 5 – Parking Canopy Lighting Retrofits

The parking canopy currently uses 32 watt T8 Linear Fluorescent lamps. The calculation above

is based on a straight lamp exchange for 25 watt T8 lamps. The price of LED T8 lamps

continues to fall as more competition enters the market. However, LED’s are not an

economically viable option without a utility rebate. A factor that may overcome the long payback

of LED lamps is their longevity. While a standard linear fluorescent lamp has a rated life of

8,000 to 10,000 hours, LED lamps are rated at 25,000-40,000 hours, thereby reducing outages

and maintenance costs.

Fluorescent vs. LED T8 Wiring Configurations

LED T8 lamps also have the benefit of not requiring a ballast to regulate voltage. This

eliminates potential maintenance issues as well as increasing the efficiency of the lumen output

of each lamp.

Category Measure Service Group Units Saved$/Year

Saved

Incentive /

Rebate

Opportunities

Implementatio

n Cost (Less

Incentive /

Rebates)

Additional

Operating +

Maintenance

Cost

Simple

Payback

(Years)

5-Year

ROIComments

Lighting Parking Canopy Lighting

RetrofitsElectric 1,717 138$ 336$ 2.4 106%

14

ECM – 6 – Guest Room Energy Management System

Implementation of a guest room energy management system should be investigated as part of

any major room renovation. An occupancy based sensor would likely not be as effective as a

door disconnect system. While the Fujitsu mini-split systems used in the guest rooms are

extremely efficient (20 SEER), if a door or window is left open by a guest or staff member while

the unit is operational, the hot, dry climate in Phoenix will draw the conditioned air out of the

room at a rapid rate. With the percentage of recreational guests at the Clarendon, this could be

a very real occurrence.

Guest Room EMS Wiring Diagram

A guest room EMS that includes door and window disconnects can cut power to the circuit

energizing the mini-spilt if the disconnect is activated. Collateral at the remote control location

as well as staff education can reduce or eliminate guest complaints and comments. Another

option is key card disconnects. These disable selected circuits when the guest’s key card is

removed from the receptacle.

Guest Room Key Card Disconnect Diagram

These systems are cost prohibitive unless the retrofit is incorporated as part of a guest room

renovation.

Category Measure Service Group Units Saved$/Year

Saved

Incentive /

Rebate

Opportunities

Implementatio

n Cost (Less

Incentive /

Rebates)

Additional

Operating +

Maintenance

Cost

Simple

Payback

(Years)

5-Year

ROIComments

HVACR Guest Room EMS Electric 17,626 1,418$ 10,500$ 7.4 -32%

15

ECM – 7 – Ozone Laundry System

Traditional laundry systems use water heated by natural gas in the wash cycle. Ozone Laundry

Systems allows hotels to effectively wash in cold-ozonated water, reducing the hot water

consumption by as much as 95%. Ozone laundry systems have been in use for decades.

However the technology has improved dramatically. The issue of “off gassing” that limited

Ozone system acceptance in non-institutional applications has been remedied. The whiteness

and softness of linens and terry’s is actually enhanced when using Ozone Laundry systems.

Ozone Laundry System Diagram

Ozone systems have been designed for use in regions with extremely hard water conditions

minimizing the need for additional water softening systems.

Category Measure Service Group Units Saved$/Year

Saved

Incentive /

Rebate

Opportunities

Implementatio

n Cost (Less

Incentive /

Rebates)

Additional

Operating +

Maintenance

Cost

Simple

Payback

(Years)

5-Year

ROIComments

Misc.Ozone Laundry System Natural Gas 5,551 5,307$ 6,650$ 6,650$ 1.3 299%

16

ECM – 8 – Liquid Pool Cover

It has been proven that approximately 70% of a pool's heat loss is due to evaporation, whether

that swimming pool happens to be located indoors or out. As a result, your pool heater or the

water chilling systems will cycle on to make sure that the water temperature remains constant.

If your facility can find a way to keep the conditioned water in your pool, it stands to reason that

your pool systems will not have to work as hard to maintain the desired temperature.

A silica based liquid pool cover reduces the rate of evaporation by approximately 50%, which

keeps more of the water in the pool, and reduces the run time required by your pool systems.

Using a liquid pool cover has been proven to save up to 35% of the energy consumed by

swimming pool conditioning systems.

Before and After Liquid Pool Cover Applications

The above image shows the relative heat (or chilled water) retention in two hot tubs, the one on

the right having a liquid pool cover and the one on the right without a liquid pool cover.

Total of All ECM’s

Category Measure Service Group Units Saved$/Year

Saved

Incentive /

Rebate

Opportunities

Implementatio

n Cost (Less

Incentive /

Rebates)

Additional

Operating +

Maintenance

Cost

Simple

Payback

(Years)

5-Year

ROIComments

HeatSavr For Pools Natural Gas 991 942$ 300$ 310$ 0.5 148%

Totals (If All Measures Implemented)

Total Electric 86,699 kWh 6,976$ 10% of Total Usage

Total Gas 6,976 therms 6,664$ 32% of Total Usage

Total Water 0 kgal -$ 0% of Total Usage

Total Overall Savings 13,640$ 15% of Total Energy Spend

17

NEXT STEPS

Automated Energy has identified potential projects and where possible estimated their simple

payback. However, prior to commencing with construction of the identified measures, some

projects will require additional project development activities to verify the audit report findings

and estimates.

The development effort for selected projects will consist of doing the necessary tasks to bring

the projects to investment grade, including evaluation, conceptual design, and preparation for

implementation. These tasks will include the following general activities:

a. On-site measurement of a variety of energy related variables necessary to evaluate system operations and performance.

b. The collected data and the usage patterns will be used to help verify operations, formulate specific recommendations, and develop detailed “investment grade” savings calculations. Baseline models will be developed and verified based on actual, measured field data where practical.

c. A recommended measurement and verification plan will be developed for each opportunity.

d. Calculations will be completed for sizing and selecting any new equipment that is to be installed.

e. Evaluate various design options and make recommended configuration selections where applicable.

f. Assist with securing applicable rebates or other financial incentives which may be available.

g. Design-Build level documentation including performance specifications, schematic design(s), implementation scopes of work and recommended sequences of operation will be drafted and assembled for the purpose of obtaining firm project implementation costing.

h. Scheduling, coordination, and planning with facility personnel, vendors, and subcontractors (as appropriate) will be performed for the purpose of refining implementation costing and schedule.

i. Summarize the results in the form of a project development report.

Thank you for allowing us to visit your facility and your support in gathering the information

necessary for this analysis. We look forward to working with you to reduce your energy related

costs and help drive profitability to your bottom line.