Presented by John Pulley & Nazila Duran Moderated by Chris Olson - Refurbish or Replace? Energy-Efficient HVAC Upgrades

Refurbish or Replace?
Energy-Efficient HVAC Upgrades

          Presented by
          John Pulley &
          Nazila Duran

          Moderated by
           Chris Olson

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www.atlassales.com

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DILEMMA:

My HVAC system is
outdated and inefficient,
but I don’t know what
steps to take to improve
the problem.

NEW LIFE
FOR EXISTING ENVIRONMENTS

Why renew a building?

 •   Useful Life
 •   Energy Efficiency
 •   Code Considerations
 •   Maintenance
 •   Re-Purpose

ENERGY

EFFICIENCY

The HVAC system is responsible for up to 40
percent of the total energy consumed by a
typical commercial building.

Proper operation and performance are essential
for energy efficiency and comfort.

Facility Condition Index (FCI) is an objective
assessment of the facility’s condition that allows
the owner to understand and rate the condition
of the portfolio. It can be applied to the macro
scale such as a campus or to individual systems.

The FCI describes the current existing state, or
physical condition, of a building as compared to
the cost model.
                       FCI =
         Total estimated cost of the repairs
                         ÷
   The current replacement cost for the facility

Definitions

1) Deficiency – is a current problem (deferred maintenance) that is visually
   noted by the assessor during the site visit and requires correction.

2) Deferred Maintenance (DM) – are normal maintenance work items that
have been deferred on a planned basis and under mandate of project funding
in the annual budget cycle. This excludes normal maintenance that has
already been scheduled, planned or funded within the current budget.

3) Capital Renewal (CR) – are the future renewal requirements for building
systems as they reach and then pass the end of their expected useful life
cycle.

4) Correction – the action required to correct a current problem (deferred
maintenance) identified by the assessor. The correction includes the
replacement/renewal pricing.

5) Replacement/Renewal Cost – is the total cost of a particular system to be
renewed when a facility is either replaced and/or renewed and normally
includes removal, replacement and disposal costs.

6) Cost Model – is the estimated cost of a new building based on the
function, size and systems configuration of the existing building. Cost
models are based on either the user provided schedule of values for a like
building or it is developed by using a similar building model.

7) Useful Life – is the number of years a system is normally expected to be
useful or provide continued service. This information is derived from the
Building Owners and Managers Association (BOMA).

8) Percent Renewal – is the percentage of a particular system normally
expected to be renewed when a facility is rehabilitated or repaired.

9) Percent Used – is the percentage used of the life of the particular system.

10) Next Renewal – is the next recommended year of rehabilitation or
replacement of a particular system.

11) Replacement Cost/SF – represents the total costs, to include total
soft costs, for the replacement of a building system on a building square
footage basis.

12) Soft Costs – are additional costs that are necessary to accomplish
the corrective work, but are not directly attributable to a deficient
system. Soft costs vary by user and location and can include:
construction contingency; design, specialized investigations (such as
geotechnical, environmental, or hazardous material), program
management fees.

FULLY INTEGRATED
THINKING

Change in ownership, use, or local market conditions may lead an owner
to do a comprehensive retrofit to increase value to tenants, invest in
future profitability, or make up for past maintenance and capital
investment deferral.

According to U.S. Department of Energy researchers, if all U.S.
businesses and institutions conducted cost-effective retrofits, the
expense would be roughly $100 billion with a four-year payback,
reducing energy costs for most buildings by 25%

Example:

Replacing a building’s lighting system or installing better insulation or
high performance glazing reduces required cooling power. Equipment
upgrades to improve efficiency may have low incremental costs, but
could result in a building with an oversized and obsolete HVAC system.
Therefore, the true cost effectiveness of these measures is diminished
without a whole-system approach.

In a fully integrated retrofit, the final step is to reduce the size of the
cooling system to exploit the purchase price and operating cost
synergies from smaller, modern, and more efficient, equipment.

HVAC system replacement is costly and can disrupt building
operations. It’s crucial to ensure that the retrofit produces the
maximum benefit. Not only will this enhance the operation of
the facility, but also help to ensure that the retrofit process will
not need to be repeated in the near future.

OPTIONS

1. In-kind Replacement

2. New Technologies

3. Flexibility

4. Part-load performance

5. Maintenance

6. The Big Picture

7. Building Occupants

RENOVATION

SLC Terminal Development Program

                                   March 25, 2009

John Pulley P.E. LEED AP BD+C
  Director of Engineering
  San Francisco, California

Nazila Duran AIA NCARB LEED AP
Project Manager
San Francisco, California

JOHN PULLEY
                              CHRIS OLSON

               CLARK MICHEL
               ATLAS SALES & RENTALS

NAZILA DURAN                PATRICK O’DONNELL
                            ENVIROTEAM

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