HomeMy WebLinkAbout5.F.4. Authorize Bids for Replacement of City Hall Boiler
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City of Shako pee
MEMORANDUM COI!SP~UT
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TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Kris Wilson, Assistant City Administrato~
Duane Toenyan, Facilities Maintenance Supervisor
SUBJECT: Replacement of City Hall Boiler
DATE: April 29, 2009
Introduction
The Council is asked to consider authorizing replacement of the boiler at City Hall.
Background
The City Hall boiler is currently 51 years old and has been incurring costly repair bills for
several years. The unit is inefficient, improperly sized for the building and presents a real threat
of failure during periods of high demand.
The current boiler has one 800,000 BTU burner. Staff is proposing that we replace it with two
smaller, more efficient units. The new units would have burners sized at 250,000 BTUs each, for
a total heating capacity of500,000 BTUs. Given the building's square footage and lineal feet of
radiators, this smaller size will adequately heat the building while using less energy.
The current boiler has an efficiency rating of75%, which means 25% of the energy consumed is
wasted into the atmosphere. The proposed new units would be 93% efficient. We estimate that
the new boiler will use 30% less natural gas than the current boiler, which would amount to an
annual savings of approximately $2,700.
The current unit is a steam boiler that requires that water always be heated to 212+ degrees. The
proposed new units would be hot water boilers controlled by monitoring outside air temperature
and would have the ability to vary water temperature between 100 and 190 degrees, depending
on the load demand. Replacing the current single unit with two smaller units will allow us to run
just one 250,000 BTU unit at a time during times oflower demand, rather than having to operate
the 800,000 BTU boiler anytime we need heat. Having two smaller units also provides us with a
back-up, so that in the event that one boiler fails, we would still have the other boiler and
therefore would be able to heat the building to some extent.
Budget Impact
Staffhas gathered three price quotes for the project, two of which were for the preferred design
of two smaller units rather than one large unit. The lower cost quote is from Owens Company,
which has a great deal of experience with our City buildings. The quote totals $53,000 for labor
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and materials. The other comparable quote was for $59,995 from Yale Mechanical. There
would be one added expense and that would be for a separate contractor to come in and remove
the asbestos contained in the current unit. The lower of the two quotes we have received for
asbestos removal is $1,880 from Envirobate. The other was for $2,160 from EnviroTech.
This project was included as a planned 2009 expense from the Building Fund, at an estimated
cost of $50,000. It appears that we will be eligible for a rebate of approximately $1,000 from
Center Point Energy.
Staff did investigate the possibility of applying for a grant for this project from the energy
efficiency component of the federal stimulus package. However, the state has yet to release even
basic program or application guidelines for these grant funds, making it highly unlikely that we
could apply for and receive a grant and then complete the project prior to the start ofthe fall
heating season. We are concerned that the existing unit may not make it through another winter,
and do not want to risk the wait. Staffwill, however, continue to monitor the grant program and
will look for other energy efficiency opportunities around the City that might qualify for grant
funding.
Relationship to Visioning. This supports Goal D-"Vibrant, Resilient, and Stable"
Recommendation. Staff recommends that we proceed with replacement of the boiler now, in
order to ensure reliable heating for the building next winter and lower gas bills for the season.
The goal would be to have the entire project completed by September 1.
Requested Action. If the Council concurs, it should offer a motion to authorize the replacement
of the City Hall boiler by Owens Company at a cost not to exceed $56,000, as well as the
necessary asbestos removal by a contractor to be determined.
....,
. ~
owens
Owens Companies, Inc.
930 East 80th Street
Bloomington, MN 55420-1499
952.854.31:\00 FAX: 952.854.3769
www.owensco.com
December 1, 2008
Mr. Duane Toenyan
City of Shakopee
129 Holmes Street South
Shakopee, MN 55379
SUBJECT: Boiler Replacement - City Hall P-6838R
Dear Duane:
Owens Companies is pleased to offer a proposal to replace the boiler at the City Hall Building.
We would also convert the current steam system to hot water and add Delta Controls to the new
boilers.
Proiect Scope
Owens will provide labor, equipment and materials fora turnkey project. We will include the
following:
. Two high efficiency Triangle Tube Hot Water Boilers (information attached) rated at
250,000 BTU input each
. One hot water heating coil for the main air-handling unit
. Demo existing boiler, associated steam piping, steam to hot water converter and steam
coil in air-handling unit
. Rigging old equipment out and new equipment into place
. Provide and install boiler vent piping
. Provide and install boiler circulating pumps
. Provide and install new gas and hot water piping for boiler and coil
. Delta Controls to start/stop, lead/lag, and reset boiler
. Power and control wiring
. Emergency shutdown controls for boiler (per Minnesota Code)
. Delivery, freight, permits, travel, and tool charges
. System start-up and check out
. One-year manufacture and workmanship warranty
Installed price is Fifty Three Thousand and no/100 dollars.............................................. $53,000.
A breakdown of this price is as follows:
. Labor - $17,430.
. Equipment & Materials - $23,359,
. Subcontractors & Other (freight, tool, permits, delivery, trip charges) - $12,211.
Building Services. Engineering. Water Treatment
Mechanical Contracting. Automation · Home Comfort
OWENS TECHNOLOGY COMPANIES
Locally Owned. Nationally Recognized. Since 1957 An Equal Opportunity Employer
. -
GENERAL TERMS AND CONDITIONS
L All orders are subject to approval by the Credit Department of the Seller.
2. A n,,% per month late will be to all due invoices.
3. Materials or must not be returned prior written from Seller.
must be Items not found to be defective are subject to a 20"/"
restocking charge.
4. Seller warrants its workmanship defect for (30) from date the work is completed,
unless other terms are agreed to in by Seller. During that period, Seller will correct the defect
in workmanship without for labor. service does not include routine maintenance.
materials, and is limited to the same warranty terms that Seller receives
from the manufacturer. Seller shall not be liable for loss, damage, 01' injury caused failure or delay
in performing services when such failme or arises from causes beyond our control.
THIS WARRANTY IS IN LIEU OF OTHER WARRANTIES OR LIABILITIES, EITHER EXPRESS OR
IMPLIED, INCLUDING ANY IMPLIED WARRANTIES MERCHANTABILITY, OR FITNESS FOR A
PARTICULAR PURPOSE. IN NO EVENT SHALL BE FOR ANY INCIDENTAL OR CON-
SEQUENTIAL DAMAGES.
5. Purchaser shall assume risk loss or damage to equipment furnished by Seller on the date that
such equipment is set in place on the job. Purchaser shall insure such equipment and all other work
supplied by Seller under this project loss or damage in an amount sufficient to protect the
interests of ALL RISK of loss. Purchaser shall cause Seller to be added as a named
insured on such insurance policy until final payment is made by Purchaser to Seller.
6, Purchaser understands and agrees that:
a. This Proposal does not include the abatement, encapsulation, or removal of asbestos
or products, or equipment containing asbestos. In the event that Seller encounters
any asbestos product or material in the course of performing its work, Seller shall have the right
to discontinue its work and remove its employees from the project site, or that portion of the
project site wherein sllch or material was encountered, until such product or materials,
and any hazards connected therewith are abated, encapsulated, or removed, and/or it is deter-
mined that no hazard exists; Seller shall receive an extension of time to complete its
work, and/or comply with its obligations under this Proposal.
b. Seller may rely upon Purchaser's representations and warranties regarding asbestos and
Purchaser's compliance with Asbestos Evaluation Requirements. Any other site investigation
requirements notwithstanding, Seller shall have no duty to identify, detect, or evaluate asbestos.
permitted Purchaser shall defend, indemnify, and hold Seller harmless for
actions, liabilities, and damages arising from or relating to asbestos at this
project including without /imitation: installation, disturbance, or removal of any product
containing asbestos or violation of governmental regulations relating to asbestos. Purchaser
releases Seller from all claims and liability relating to asbestos at this project site, including
claims for subrogation.
7. All agreements are contingent upon strikes, flood, accidents, or delays caused by circum-
stances beyond 01.11' control.
Seller agrees that it will not discriminate against or harass any employee or applicant for employment
because of race, color, creed, religion, disability, national origin, sex, member or activity in a local com-
mission, sexual orientation, age, marital status, status with regard to public assistance or any other
characteristic protected law and will include a similar provision in any subcontracts entered into for
the performance hereof.
'^ , ,
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Mr. Duane Toenyan
December 1, 2008
Page Two
Terms & Conditions
Owens requests a 25% down payment upon acceptance. This proposal is firm until May 1,
2009. If this project is not approved before May 1, 2009, please contact us for an updated
price. Any additional repairs not outlined in this scope would be an extra cost and Owens would
contact you before proceeding. Our terms are net 15 days from invoice and progress billings are
acceptable as the project progresses. Please refer to our complete Terms & Conditions on the
reverse side of this proposal.
If you would like to proceed, please authorize b.elow and we will contact you for scheduling,
Thank you.
Sincerely,
71~OMPAN?J%~
Margery , xborough
Technical ervices Representative
MT06838R.cfc
Accepted by:
PURCHASER:
Signature
Title Date
owens .~rake t(JmforfM~
Owens Companies, Inc.
930 East 80th Stmet
Bloomington, MN 5542.0.1499
952,854.3800 FAX:952,854,S769
WYlW,OW8I1SCO ,com
April 17, 2009
Me Duane T oenyan
City of Shakopee
129 Holmes Street South
Shakopee, MN 55379
SUBJECT: Boiler Replacement-City Ha.ll
Dear Duane:
Listed below is information on how lhenew boiler we proposed last December could save the
City in reduced energy, we thought this information would be helpful.
Energy Savings
There are numerous Ways the new boiler system will save on your fuel bills and energy
consumption this year and every year itisoperating,
.. The Triangle Tube boilerssre rated up to 96% efficiency, .your application should see
about 92'Vo to 93%.
It The current boiler effiCiency is about 75%. An efficiency increase of 20% is very. reaL
This could translate to a 20% decrease in your annualfue.1 bills,
. The boiler capacity has been reduced by 30%, The existing boiler is oversized and the
new boilers are more!:fficient, the combination will save another 5% to 7%.
.. The boilers are equipped with outdoor reset controls to minimize run time in the spring
and faU,asavings of approximately 2%).
.. Converting the boiler system to hot water including the main air handling unit, <[savings
of 2% to 3% and a maintenance and repair savings dfanother 3% or so.
. Installation of Delta controls for setback capabilities for the hot water loop and air
handling unit. An approximate 2% savings,
If you add up all the different ways we can save energy with this system, the total is well over
30% annually off the bottom line of what the City is paying for natural gas and electricity to
operate the boileT and heat the building.
If you. would like to meet and discuss this further or if you have any questions, please call me
directly at 952-703-5727. Thank you.
Sincerely,
~P~'INC.
m. 5t ~:~
Service Manager
WWC041709.cfc
Building Services. . Engineering' Water Treatment
Mechanical Contracting . Automation . Home Comfort
OWENS TECHNOLOGY COMPANIES
Locally Owned' Nationally Recognized' Since 1957 An. Equal Opportunity Employer