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) Upgrade
The Part 2A, Chiller Replacements Project, is an energy retrofit project. The scope of
work included 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 Part 2A, Chiller Replacement Project.
The bidder was Green Mechanical. Council awarded the contract in the amount was
$414,038 and a contingency of 10% to cover any unforeseen changes.
Part 2B, is the Chiller Control System upgrade that is associated with Chiller
Replacement project. Part 2B (Chiller Control System upgrades) must be in place in
order to realize the full energy savings as required by the grant. Without Part 2B, the
City will not realize the energy requirements of the grant for Part 2A.
It is anticipated that the cost for Part 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.
Staff recommends that the Resolution be approving the Part 2B (Chiller Control
System upgrades) Project and appropriating $400,000 plus 10% contingency for any
unforeseen changes for a total of $440,000 in account number 189-409-500-598-
1591(Chiller Project) using Civic Center Refurbishing fund.
Preliminary Energy Audit Report —by I-Ioneywell Building solutions, January 14, 2009