UNIVERSITY OF COLORADO DENVER
Anschutz Medical Campus
PROGRAM PLAN AND BUDGET
FOR ENERGY EFFICINCY and SUSTAINABLILITY
R1 North Tower Energy Savings Project
FUNDING YEAR 2013-2014
August 12, 2013
i
ACKNOWLEDGMENTS
This program plan was prepared with assistance and information from:
ME Engineers
Cator | Ruma & Associates, Co.
rd
10055 West 43 Avenue
896 Tabor Street
Wheat Ridge, CO 80033
Lakewood, CO 80401
University of Colorado Denver | Anschutz Medical Campus
Facilities Projects Department & Office of Institutional Planning
Dave Turnquist, Mike Barden, Ken Neeper & Mark Berthold
ii
TABLE OF CONTENTS
Page
Preface and Summary ------------------------------------------------------------------------------------------ 1
Background ---------------------------------------------------------------------------------------------- 1
Program Planning Process ----------------------------------------------------------------------------- 2
Program Information -------------------------------------------------------------------------------------------- 3
Institutional Planning Policies ------------------------------------------------------------------------- 3
Infrastructure Development Plan Objectives -------------------------------------------------------- 3
Prior Infrastructure Program Plans and Modifications---------------------------------------------- 3
Facilities Needs ---------------------------------------------------------------------------------------------------- 6
Guidelines ------------------------------------------------------------------------------------------------ 6
Physical Plant Requirements -------------------------------------------------------------------------- 6
Project Description --------------------------------------------------------------------------------------------- 7
Overview ------------------------------------------------------------------------------------------------- 7
Current Program Plan ----------------------------------------------------------------------------------- 7
Program Details ----------------------------------------------------------------------------------------- 7
Alternative Solutions to Meet Program and Facilities Requirements --------------------------------- 9
Implementation Requirements -------------------------------------------------------------------------------- 9
Schedule --------------------------------------------------------------------------------------------------- 9
Capital Construction Project Cost Analysis and Budget-------------------------------------------- 9
Appendices
Appendix A - Opinion of Probable Cost (CC-C Form – FY 2013-14)
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
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 2004. 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 2002.
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 6.2.1 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
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 $5,284,097.00 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
2050. 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
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, 1999. 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, 2000. 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, 2001.
•
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, 1998. A Master Plan
Supplement dated April 21, 1999, was approved by the Board of Regents on September 9, 1999.
The August 2000 Master Plan Supplement was approved by the CU Board of Regents on August
3, 2000. The November 2001 Master Plan Supplement was approved by the CU Board of
Regents on December 13, 2001. The November 2002 Master Plan Supplement was approved by
the CU Board of Regents on November 14, 2002. 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 2020. 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
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
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 2009. 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
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
A/E fees
ECM-01-B
Engineering & Design
Addition of Lighting
Control – North Tower
Rebalance/Reduce airflow
rate in Laboratories –
North Tower
Addition of heat recovery
loop for the North Tower
Addition of Evaporative
Cooling to the North
Tower HVAC Systems
Re-commissioning of
various mechanical
systems
10% for renovation
ECM-02-B
ECM-03
ECM-04
N/A
Simple Payback
$ 436,703
$ 1,439,002
Net Yearly
Savings
N/A
$ 98,300
$
$ 50,000
10.4 years
$ 1,823,500
$ 135,000*
13.5 years
$
312,600
$ 160,000
2 years
$
270,920
$ 14,000
19.3
521,000
14 years
Contingency
$ 480,372 N/A
Total
$ 5,284,097 $ 457,300
11.5 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
•
•
•
•
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, 2013.
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 2014. A March 2014 construction start date is anticipated with
completion and commissioning of the systems anticipated in March of 2015.
Project Cost Estimate
The total project budget for construction is estimated at $5,284,097.00 with a payback period of 11.5
years not including the cost of financing. With the successful implementation of the ECM’s on R1South 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
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 2013-2014)
•
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 1996.
R1 North Tower
Energy Efficiency and Sustainability
Page 8
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
Appendix A – Opinion of Probable Costs (CC-C Form FY 2013-14)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
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
R1 North Tower
Energy Efficiency and Sustainability
Page 12
R1 North Tower
Energy Efficiency and Sustainability
Page 13
R1 North Tower
Energy Efficiency and Sustainability
Page 14
R1 North Tower
Energy Efficiency and Sustainability
Page 15
R1 North Tower
Energy Efficiency and Sustainability
Page 16
R1 North Tower
Energy Efficiency and Sustainability
Page 17
R1 North Tower
Energy Efficiency and Sustainability
Page 18
R1 North Tower
Energy Efficiency and Sustainability
Page 19
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
R1 North Tower
Energy Efficiency and Sustainability
Page 21