UNIVERSITY OF COLORADO DENVER Anschutz Medical Campus. PROGRAM PLAN AND BUDGET FOR ENERGY EFFICINCY and SUSTAINABLILITY

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1 UNIVERSITY OF COLORADO DENVER Anschutz Medical Campus PROGRAM PLAN AND BUDGET FOR ENERGY EFFICINCY and SUSTAINABLILITY R1 North Tower Energy Savings Project FUNDING YEAR August 12, 2013 i

2 ACKNOWLEDGMENTS This program plan was prepared with assistance and information from: ME Engineers Cator Ruma & Associates, Co West 43 rd Avenue 896 Tabor Street Wheat Ridge, CO Lakewood, CO University of Colorado Denver Anschutz Medical Campus Facilities Projects Department & Office of Institutional Planning Dave Turnquist, Mike Barden, Ken Neeper & Mark Berthold ii

3 TABLE OF CONTENTS Page Preface and Summary Background Program Planning Process Program Information Institutional Planning Policies Infrastructure Development Plan Objectives Prior Infrastructure Program Plans and Modifications Facilities Needs Guidelines Physical Plant Requirements Project Description Overview Current Program Plan Program Details Alternative Solutions to Meet Program and Facilities Requirements Implementation Requirements Schedule Capital Construction Project Cost Analysis and Budget Appendices Appendix A - Opinion of Probable Cost (CC-C Form FY ) Appendix B Engineering Services Proposal Letter dated May 1, 2013 from Cator/Ruma & Associates, Co. for design and construction administration services. Appendix C Independent Third Party Review Letter iii

4 PREFACE & SUMMARY Background The building known as Research 1 (R1) was the first major research building constructed on the CU Anschutz Medical Campus with construction being completed in The original design team was tasked with delivering an on budget facility that provided ultimate flexibility for an ever changing researcher population without compromising functionality and user safety. R1 is comprised of two buildings (North and South Towers) and together is a total of 628,423 square feet. The North Tower is 9 stories with an underground animal vivarium in the basement level, while the South Tower is 12 stories. In the spring of 2009, ME Engineers of Wheat Ridge, Colorado conducted a facility energy efficiency and retrofit study of Research 1 to determine the extent of potential energy cost savings that could be implemented in the Electrical, HVAC, Plumbing and associated structural systems of the building. This was a detailed study to help determine the cost effectiveness of implementing a number of energy conservation measures (ECM) to reduce operating cost and bring down utility costs to be more in-line with the Research 2 (R2) building. R2 was completed in 2008 and included many newer energy reduction features that were not implemented or typically installed in research buildings like R1 at the time of its design in The report issued on July 10, 2009 detailed those components that would be most beneficial to the University to implement with an estimated cost and number of years for payback. The recommendations documented in the report were separately listed for the North and South Towers of R1. The methodology used to calculate the analysis and develop the recommended Energy Conservation Measures in the report included the following information: Weather Data for The Typical Meteorological Year (TMY3) for Denver, CO Existing Building Geometry for the exterior envelope and building characteristics Existing Utility Usage Data provided by the University Current Utility billing rates for Electrical, Chilled Water, and Steam The data collected was then entered into a computer simulation software package that is widely used in engineering studies of commercial and institutional facilities. This software ran the ECM simulation analysis of the various systems to determine results. Trane Tracer 700 version software was used for the baseline energy profiles and to analyze the overall cost effectiveness of implementing the various Energy Conservation Measures to determine the cost savings that were most appropriate for recommendation. R1 North Tower Energy Efficiency and Sustainability Page 1

5 An additional step in the analysis looked at the installation budget of the ECM s along with the yearly maintenance cost associated with the new system. This allowed the recommendations listed in the report to be the most overall cost effective ones for implementation by the University. In 2010, the University implemented the recommended ECM items for the R1 South Tower. The University has tracked the monthly utility usage for the South Tower after the ECM s were implemented and determined there were immediate energy reductions and utility cost savings. The ECM s implemented on R2 South Tower have actually exceeded the payback period calculations listed in the original engineering report. This program plan is to implement the recommended Energy Conservation Measures in the R1 North Tower. Based upon the results of the R1 South Tower implemented ECM s, there is a high level of confidence that the ECM s for the North Tower will meet or exceed the payback period as calculated by the engineering report. The total cost of the ECM s to be implemented in R1 North Tower is $5,284, with a payback period of 11.5 years. Including the costs of financing, the payback period will be 14 years for all items. However, the payback period for some items is less than three (3) years. For the funding of this project the treasury will be submitting a financing plan that includes a future bond issuance for action concurrent with the program plan. The rate will be determined based upon the market at the time of the draw. This program plan lists in detail the Energy Conservation Measures to be implemented in the R1 North Tower, the budget cost to implement the ECM s and the expected pay-back period that was determined through the simulation analysis software. Consistency with the Strategic Plan and Sustainability The CU Anschutz Medical Campus is committed to sustainable practices in order to insure the longevity of our facilities and institutional accomplishments. To this end, the university is a signatory of the American College and University President s Climate Commitment (ACUPCC) which requires a comprehensive plan to significantly reduce greenhouse gas emissions over incremental periods through Energy conservation measures such as those already completed in the R1 South Tower project are helping the university attain its goal of a 20% reduction in emissions by the year 2020, as well as saving the university $900k per year in utility expenditures. The University of Colorado Board of Regents also supports the goals of the ACUPCC and has formalized in a resolution that all University of Colorado R1 North Tower Energy Efficiency and Sustainability Page 2

6 campuses will adhere to the goals of the ACUPCC and that they will support projects that result in natural resource use and greenhouse gas emissions reductions. Relationship to the Facilities and Infrastructure Master Plans CU Anschutz Medical Campus along with University of Colorado Hospital (UCH) prepared an Infrastructure Master Plan and Institutional Master Plan for the campus. The Infrastructure Master Plan dated August 18, 1999, was prepared and approved as part of the Master Plan supplement dated April 21, 1999, and approved by the Board of Regents on September 9, An Infrastructure Master Plan Supplement dated August 3, 2000, was prepared and approved as part of the August 2000 Master Plan Supplement approved by the Board of Regents on August 3, A new restated Infrastructure Master Plan dated October 2001 was prepared and approved as part of the November 2001 Master Plan Supplement approved by the Board of Regents on December 13, The Institutional Master Plan dated September 25, 1998, was created jointly by University of Colorado Denver Anschutz Medical Campus and UCH for the development of the Campus, and was approved by the Board of Regents of the University on October 15, A Master Plan Supplement dated April 21, 1999, was approved by the Board of Regents on September 9, The August 2000 Master Plan Supplement was approved by the CU Board of Regents on August 3, The November 2001 Master Plan Supplement was approved by the CU Board of Regents on December 13, The November 2002 Master Plan Supplement was approved by the CU Board of Regents on November 14, The most recent master plan effort is currently in a draft format but is expected to be presented to the Board of Regents in September 2013 for approval. These plans created the initial direction and approach for the development of the CU Anschutz Medical Campus for the period 1998 to An integral part of the Institutional Master Plan is the section pertaining to utilities and infrastructure implementation strategy. In 2001 the Urban Land Institute conducted a review of the planning and financing efforts and encouraged both UCH and CU Anschutz Medical Campus to find ways to accelerate the development. To this end, CUAnschutz Medical Campus developed the COP (Certificates of Participation) proposal approved by the Board of Regents, the Colorado Commission on Higher Education (CCHE) and the State Legislature. R1 North Tower Energy Efficiency and Sustainability Page 3

7 As part of a commitment and responsibility to create a more sustainable campus, implementation of these Energy Conservation Measures aligns with the goals and mission of the University. The reduction of energy usage also allows the University to better utilize the Central Utility Plant (CUP) systems as originally designed and may help reduce the current power production, saving the university even more money in utility expenses as a result of reduced energy production. This helps push off expansion of the existing CUP systems to future years further reducing the anticipated infrastructure costs that were identified in the Master Plans. Although future expansion of the CUP is anticipated as the University continues to grow, implementation of these ECM s will help the University operate its buildings in a more cost effective manner using the existing CUP utility systems. R1 North Tower Energy Efficiency and Sustainability Page 4

8 PROGRAM PLAN INFORMATION Project Description From the July 10, 2009 Research 1 (R1) Energy Retrofit Study conducted by ME Engineers of Wheat Ridge, CO, specific Energy Conservation Measures (ECM s) were recommended for implementation on the North Tower of R1. These include electrical, HVAC, plumbing and associated structural systems specific to these systems. The following items were identified as overall cost effective ECM s that the University should implement. It should be noted that the costs and utility rates used in the analysis are from Due to utility costs rising faster than construction costs since 2009, it is anticipated that each of the payback period years listed below will be less and faster than the original report calculated. Electrical Systems Lighting Control Occupancy Sensor system: The north tower implementation of a lighting control occupancy sensor system at the cost of $1,439,002 with a yearly savings of $98,300. This results in a calculated payback of 14.0 years. In addition to controlling the lighting, the system senses occupancy of persons in the space and adjusts air changes in the mechanical system accordingly to help decrease the energy consumption when spaces are unoccupied. This helps create a substantial addition to the calculated savings. Mechanical Plumbing and HVAC systems Fume Hoods: Retrofit of the constant volume fume hoods into variable volume fume hoods was anticipated. However, additional analysis and design determined that changing the approach to reduce the number of air changes to 6 air changes per hour when occupied and 4 air changes per hour when unoccupied for the original mechanical system in the north tower would result in a lesser retrofit cost and faster payback period than the 10.4 years originally calculated. This air change per hour reductions has been reviewed and approved by the University EH&S (Environmental Health & Safety) department. The cost of this implementation is $521,000 with a yearly savings of $50,000. Heat Recovery Loop: The addition of a heat recovery loop to the North Tower HVAC system will cost $1,823,500 with a yearly savings of $135,000. This results in a calculated payback period of 13.5 years. It should be noted that the Indirect Evaporative Cooling is not figured into R1 North Tower Energy Efficiency and Sustainability Page 5

9 this calculation but will be a residual benefit that will help improve the payback period and increase the net yearly savings. Evaporative Cooling: Due to the dry nature of the Denver, Colorado climate, cooling for buildings is very receptive to evaporative cooling technology. The addition of evaporative cooling to the North Tower HVAC System will cost $312,600 with a yearly savings of $160,000. This results in a calculated payback period of less than 2.0 years. CU AMC R1 Energy Efficiency Upgrades Phase III ECM Description First Cost Net Yearly Savings Simple Payback A/E fees Engineering & Design $ 436,703 N/A ECM-01-B Addition of Lighting Control North Tower $ 1,439,002 $ 98, years ECM-02-B Rebalance/Reduce airflow rate in Laboratories North Tower $ 521,000 $ 50, years ECM-03 Addition of heat recovery loop for the North Tower $ 1,823,500 $ 135,000* 13.5 years ECM-04 Addition of Evaporative $ 312,600 $ 160,000 2 years Cooling to the North Tower HVAC Systems N/A Re-commissioning of $ 270,920 $ 14, various mechanical systems Contingency 10% for renovation $ 480,372 N/A Total $ 5,284,097 $ 457, years** * Note 1: Indirect Evaporative Cooling is not factored into the savings but will improve the payback if implemented **Note 2: Adding the cost of financing to the total project cost will result in a final payback period of 14.0 years. In addition to the above savings, it is anticipated that this project along with the R1 South Tower projects previously completed, the University will be able to forego the addition of one chiller unit expansion at the CUP at a future capital expenditure savings of $2.5 Million. This allows the University to hold off on planned CUP infrastructure upgrades until additional capacity is needed. The calculations as listed above were conducted and overseen by licensed engineers with assistance from the following companies and consultants to provide data, equipment specifications, and performance analysis of the recommended ECM s. US Engineering R1 North Tower Energy Efficiency and Sustainability Page 6

10 Encore Electric George Lacy Sales Siemens Building Technology Xcel Energy of Colorado For additional information for each of the ECM s recommended, refer to the original ME Engineering report dated July 10, 2009 and the Services Fee proposal by Cator Ruma dated May 1, Alternatives The University may choose to do nothing at this time to implement the energy conservation measures. Although there is not an immediate need to reduce energy production at the Central Utility Plant (CUP), implementation of these measures will reduce the amount of energy needed from the plant and will therefore allow additional structures to be built on campus without expanding the CUP s existing systems. Also, by doing nothing, monthly utility cost savings will not be realized by the University to help reduce operating budget nor contribute toward the reduction of greenhouse gases as committed to in the University President s Climate Commitment (ACUPCC). Project Schedule The planning and implementation for this project is anticipated to be 18 months. With approval of this program plan, 6 to 8 months of project planning, design and engineering would commence in September 2013 with bidding taking place in March A March 2014 construction start date is anticipated with completion and commissioning of the systems anticipated in March of Project Cost Estimate The total project budget for construction is estimated at $5,284, with a payback period of 11.5 years not including the cost of financing. With the successful implementation of the ECM s on R1- South Tower, the calculations for the R1-North Tower were verified by comparing them to the final costs submitted by the bidding general contractors on the R1 South Tower. See Appendix A for the CC-C budget form for this project. R1 North Tower Energy Efficiency and Sustainability Page 7

11 Financing Explanation For the funding of this project the treasury will be submitting a financing plan that includes a future bond issuance for action concurrent with the program plan. The rate will be determined based upon the market at the time of the draw. Supporting Documents The appendix of this Program Plan includes the following supporting documentation: A -Opinion of Probable Cost CC-C Form (FY ) B - Engineering Services Proposal Letter dated May 1, 2013 from Cator/Ruma & Associates, Co. for design and construction administration services. C Third Party Program Plan review Letter by RMH Group Third Party Review Appendix C of this Program Plan includes a Third Party Review by RHM Group of Denver, CO. RMH is a Denver-based engineering firm with an array of quality mechanical, electrical, and industrial process services committed toward sustainable practices. They have a reputation of engineering solutions that are tailored to each client and the specific project requirements. RMH Group is familiar with the CU Anschutz Medical Campus and has completed multiple projects for the University of Colorado institution for over 50 years including projects on the new CU Anschutz Medical Campus since its inception in R1 North Tower Energy Efficiency and Sustainability Page 8

12 Site Plan The below map shows the location of Research 1 North Tower on the Anschutz Medical Campus. R1 North Tower Energy Efficiency and Sustainability Page 9

13 Appendix A Opinion of Probable Costs (CC-C Form FY )The following is a copy of the CC-C state budget estimate form showing the project Probable Cost. R1 North Tower Energy Efficiency and Sustainability Page 10

14 Appendix B Proposal for Design and Engineering Services The following attachment is a Proposal from Cator/Ruma & Associates Company for Design and Construction Administration services on this project: R1 North Tower Energy Efficiency and Sustainability Page 11

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23 Appendix C INDEPENDENT THIRD PARTY REVIEW The following attached letter is a third party review of this program plan by RMH Group of Denver, CO. R1 North Tower Energy Efficiency and Sustainability Page 20

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