HomeMy WebLinkAboutExplanationEXPLANATION:
On March 16, 2010, Council approved a self -funded Comprehensive Energy Retrofit
Program agreement wherein the City acquired and financed equipment and services
from Honeywell Building Solutions to reduce energy use and/or to make for a more
efficient use of energy. The payments to Honeywell Building Solutions for the
upgraded equipment and services came from the realized energy savings. This
overall Comprehensive Energy Retrofit Program had two phases. Phase 1 which
Honeywell Building Solutions completed included items such as energy -efficient
lighting, boiler replacement, cooling tower, solar thermal installation, building
automation system and street lighting retrofit.
In June 2009, in preparation for Phase 2 of the self -funded Comprehensive Energy
Retrofit Program, the Public Works Department applied for and received an Energy
Efficiency Community Development Block Grant (EECDBG) in the amount of $561,700
to replace the 40-year old chillers. These chillers are used to cool the Civic Center.
The service life cycles for these types chillers is typically 20 years. The useful life of
the chillers has long since passed.
The remaining work planned under the self -funded Comprehensive Energy Retrofit
Program, Phase 2 included:
- Part 2A: Chiller Replacement
- Part 2B: Chiller Control System (aka Air side)
The Phase 2A, Chiller Replacements Project, is an energy retrofit project. The scope
of work includes the following:
• Demolition work - includes removal of the existing chillers, pumps and piping
systems.
• Provides two (2) energy efficient replacement chillers.
• Provides new variable primary flow chiller, pumps & associated controls.
• Provide premium efficiency motors & variable -frequency drives (vfd) on new
pumps and motors
• Provide refrigerant monitoring system along with ventilation exhaust system.
• Electrical work associated with the proposed mechanical changes.
• Provides for a temporary chiller including all necessary hot tapping
associated with this work to maintain proper cooling for the building at all
times if and when necessary.
The EECDBG grant required that Honeywell Building Solutions be a sub -recipient of
the grant; Honeywell Building Solutions declined. Because the grant also required that
the Chiller portion be awarded by August 13, 2011, the City's only option was to follow
the Public Contract Code requirements of advertising the project and awarding the
contract to the lowest bidder.
It was anticipated that Honeywell Building Solutions would complete Phase 2 (Part A &
B) but because Honeywell Building Solutions would not accommodate the sub- -
recipient provision, the City must publicly bid and award both Part A & B of Phase 2 in
accords with the Public Contract Code.
On June 30, 2011, only one bid was received for Phase 2A, Chiller Replacement
Project. The bidder was Green Mechanical. The bid amount was $415,038 and staff
requests a contingency amount of $41,503 (10%) to cover any unforeseen changes.
Phase 2B, is the Chiller Control System upgrade that is associated with Chiller
Replacement project. It is important to note that Phase 2B (Chiller Control System
upgrades) must also be in place in order to realize the full energy savings as required
by the grant. Without Phase 2B, the City will not realize the energy requirements of
the grant for Phase 2A.
It is anticipated that the cost for Phase 2B, the Chiller Control System Project is
approximated at $400,000. As a result of replacing the existing chillers with new
efficient chillers and installing the control system, an overall annual savings of $24,009
is expected. This includes an annual energy savings of $9,961 and $14,097 in
deferred capital costs associated with replacing the aging equipment'. Once Phase 2B
is complete, the energy savings will total $17,912 annually. Funding is available from
the Civic Center Seismic Retrofit appropriation and the City is researching the
possibility of using 2011 Tax Allocation Bond funds to augment the costs.
Staff recommends that the Resolution be adopted awarding the contract to Green
Mechanical and appropriating the amount to cover the contract plus 10% contingency
for a total $456,541 for the construction of the improvements as outlined above for the
Chiller Replacement Project (Phase 2A) with the understanding that Phase 2B will
need to be funded in the approximated amount of $400K in order to receive the
reimbursable grant which is funding this contract.
Preliminary Energy Audit Report —by Honeywell Building solutions, January 14, 2009