Mechanical Systems – eyes-wide-open
It’s 50 plus years and counting since Central Park Residences were completed. As noted, previous CPOA boards failed to adequately set aside reserves for the replacement of those aging systems, some of which are now inefficient and worn out. The good news is that in 2019 Central Park adopted a Reserved Funding Plan that identifies 64 reserve building systems and components, their remaining useful lives, and the future reserve expenditures that will be required for eventual repair and or replacement.
The even better news is that Central Park’s Bylaws were amended in 2019 to require the association (CPOA) to fund and maintain a separate reserves account that can only be used to replace or renovate large capital assets at end-of-life. The account is required to be reviewed and updated by a certified reserves specialist every 5 years to confirm that the reserves account is being funded adequately.
The change ensures that the property will be properly maintained on a published schedule and that the funds will be available when needed without the need for special assessments. Simply said, it protects the investments of owners for the future. In the meantime, there is catching up to do.
In 2013/14 the CPOA board retained MPW Mechanical Systems to conduct an audit of Central Park’s mechanical systems. It included HVAC, central plant, basement mechanical rooms, entry lobbies and common areas, individual fan coil units, central building exhaust system, outside air-handling units and associated controls. The domestic water systems, sewer systems, condensate collection system and the domestic water heating systems were also included.
The report identified a full list of mechanical, electrical and plumbing deficiencies resulting from the age of the equipment. It included equipment evaluation tables and a Master Plan Priority List of Potential Improvements Over Time, including the eventual replacement of the HVAC System. Since no cost estimates for the HVAC System replacement were available at the time, it was not included in the reserves program. Research and investigations continued over recent years in determining the path forward on the HVAC System, what equipment will be the best fit, and how it will be funded.
Central Park Residences’ HVAC system is original, with some minor improvements. It is a four-pipe distribution system that relies upon chilled water for cooling and steam for heating, both provided by a third party. Units in the towers are heated and cooled by vertical mounted, in-the-wall fan/coil units separated by a control damper.
In the Spring of 2022, the CPOA Board presented a plan to replace the existing 4-Pipe system with individual heat pumps in all of the tower units. The costs have been projected in the neighborhood of $10,000,000. The proposal anticipates funding half of the costs from the existing Long Term Reserve program and the other half from guaranteed energy savings realized through the higher efficiency of the new system. That would mean the improvements can be made without any increase in dues or any special assessments on owners. Implementation of the proposal will require an affirmative vote of owners, likely to be held in the Summer of 2022.