HomeMy WebLinkAboutItem 4.04 CivCentHVACReplace CITY CLERK
File # 200-30
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: June 4, 2002
SUBJECT: Request for Waiver of Competitive Bid for Advance Purchase of
Material Only - Civic Center HVAC Replacement Project
Report Prepared by: Lee S. Thompson, Public Works Director
ATTACHMENTS: 1) Original Feasibility Study by Henry Meyer & Associates
2) June 27, 2001, letter from Henry Meyer & Associates
detailing energy cost saving information
3) Cost quotation letter from Edward B. Ward and Company,
Carrier Equipment Wholesale Distributor
4) Letter from Henry Meyer & Associates indicating potential
cost of using a chiller or other alternate type of HVAC
equipment
5) Resolution authorizing waiver of competitive bid
RECOMMENDATION: ~r~~Adopt resolution authorizing issuance of purchase order
FINANCIAL STATEMENT: The total contract purchase price for 11 assorted HVAC (heating,
ventilating, and air conditioning) units is $511,657 (with addition of
sales tax), including controls and spring vibration isolation rails, per
letter quotation, Attachment 2. This cost is within funds budgeted
for construction of the project.
DESCRIPTION:
Background: The Civic Center HVAC replacement project was authorized by the City Council
during the 2001-02 fiscal year as part of a group of three projects intended to reduce energy usage and
cost. The original feasibility study for this project is Attachment 1. This project has not gone out to bid
as yet due to Staff time constraints in overseeing the preparation of plans and specifications; however,
the plans are now in the final review stage, and the project is expected to be bid no later than July 2002,
for construction in the Fall of 2002.
Part of the project design was geared around selection of HVAC units that match the footprint of the
existing rooftop units so that the new foam roof would not be torn up and so that existing ducting and
COPIES TO:
ITEM NO. ~
g:hniscprojhhvac\purchase of hvac units ag st
thermostat zoning could continue to be used as much as possible° There was an initial concern about
obtaining the "same" units that are currently installed on the building; however, the units proposed to
be installed are updated versions which have intemal component changes that have been engineered for
greater efficiency (see Henry Meyer letter Attachment 2 detailing energy efficiency information). The
major improvements are: more efficient semi-hermetic compressors, more efficient condenser fan
assemblies, and the use of more modem and reliable electronic components. The project, as designed,
includes an energy management system which will allow the units' operation to be curtailed during the
times the building is not occupied, further reducing energy usage and costs.
The estimated annual savings in kilowatt hours are 334,203 KwH compared to the existing system. The
estimated cost savings factor, based on rates in effect at the time the studies were done, is $70,000 to
$80,000 annually. In addition, the project designers have reviewed each individual office and area of the
building to determine what changes are needed to improve air flow in problem areas and have included
those changes as part of the plans and specifications. It is anticipated that the combination' of the new
units, ducfing changes, and energy management system will improve the comfort level in the building,
as well as reduce energy usage.
Request for Waiver of Competitive Bid: Equipment is normally purchasedby a project contractor
rather than directly by the City and therefore becomes part of a competitive bid price. In this case, the
manufacturer's production schedule is requiring that the equipment be ordered prior to bidding. Because
of the need to obtain sPecific equipment to fit the existing conditions at the Civic Center building, the
equipment must be purchased from Carrier Corporation. ,
Staff recently received notification from Carrier's local wholesale supplier (Attachment 3) that orders will
not be accepted for these units after June 14, 2002, as Carrier is ceasing production of this model. This is
not a situation in which there is existing stock that is being cleared out; these units are custom-built when
ordered for specific projects. Warranties are not affected by this decision. The units come with a standard
one-year parts and labor warranty; extended warranties are available up to five years at additional cost.
Carrier has committed to having replacement parts available for 10 years, and the dies to produce the parts
available for 20 years. In addition, Carder will also make drawings available for production of parts by
other vendors in the event that Carrier itself ceases to make the parts after 20 years. These specific units
have recently been installed at the Pleasanton City Hall, as well as on privately-owned buildings in
Dublin, Danville, and Hayward.
Attachment 4 is an estimate of potential costs if an alternate HVAC system is installed; because of the
ducting and zoning changes needed to accommodate a chiller or other alternate system, the project cost is
essentially double. When the proposed new units reach the end of their useful life in approximately 2022
to 2032, the system would then need to be replaced with a chiller/air handler combination or whatever
new technology is available at the time.
In order to secure these units for the City's project, Carrier is requiring that the City submit a purchase
order by the June 14th deadline date. Delivery of the units is anticipated to be about 40 working days,
which is estimated at September 1, 2002. This delivery schedule would fit with the anticipated project
schedule. The specification would reflect that the equipment has been purchased by the City for
installation by the contractor. The delivery instructions would be modified prior to shipment to indicate
the contractor's address or a staging site rather than the Civic Center site.
Edward B. Ward and Company is the local wholesale distributor for Carder products in the Bay Area.
There is no other reasonably local vendor of this type that could be an alternate bidder without going out
of the area. The City is being quoted the same price at which Edward Ward would sell these units to a
contractor or retailer.
Accordingly, this proposed purchase meets the requirements for exemption from the formal bidding
requirements in the City's purchasing ordinance. Section 2.36.050 (A) (2) provides an exception to the
public bidding requirement "[w]here the City's requirements can be met solely by a single patented article
.... "o Since only the Carrier product has the same footprint as the City's existing HVAC units, it is the
only article that meets the City's requirements°
The bid package ultimately issued for competitive bid from contractors would include labor and any other
required materials to install the purchased HVAC units, as well as labor and materials for duct changes
and extensions that are needed and also for provision and installation of the energy management system.
As noted above, Staff anticipates requesting authorization to advertise for bids within the next two
months.
Staff recommends that the City Council adopt the resolution (Attachment 5) authorizing waiver of
competitive bid and issuance of purchase order to Edward B. Ward and Company.
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HenrY Mel/er and Associates
11852 Dublin Blvd
Dublin, CA. 94568 U.S.A.
Phone 925.828.2920
Fax 925.828.5034
June 27, 2001
Ginger Russell
Public Works Department
City of Dublin
100 Civic Plaza
Dublin, CA 94568
Dear Ginger,
We recieved your fax regarding the heating ventilating and air conditioning (HVAC) report. You have raised some
good questions regarding the values for energy savings provided by the PG&E SBC energy savings software. I
faxed and called PG&E and was given a telephone number for the author of software who after a week responded
with the information that the new economisers alone would reduce power consumption by nearly fifty per cent. I ran
this on the SBC energy savings program at 24 hours per day operation and he was correct.
The SBC software package also takes into account the temperature at Dublin based on published data and
incorporates it into the energy model so the energy calculations are specific to the site. This information is used in
the program to determine how much cooling or heating is required.
Economizers are a means to use outside air for free cooling when the temperature is moderate. There are no
economizers on the existing HVAC system but they are part of the proposed New HVAC unit package and are
included in the price for the installation of the new HVAC units.
The new units will also be more efficient providing energy savings each hour they operate. The proposed energy
management system (EMS) will be utilized to shut down the HVAC units when no one is in the building or at other
times when air conditioning is not necessary. For the purposes of this study 12 hour per day, six day a week
operation was assumed. It is expected that the greatest energy savings will come from the use of new more
efficient HVAC units with economizers and the new EMS system.
Since PG&E recommends use of the program to determine the incentives, to answer your questions I ran the
program for both the New HVAC w/economizers and EMS, and EMS only scenarios. The results are tabulated on
the attached page.
ALTERNATIVE ENERGY SAVINGS
Existing HVAC Units1 New HVAC/Econo/EMS 2 EMS Only3
kw kwh r kw kwh r kw kwh r
Baseline Energy 326.4 1068475
Usage
Proposed Usage 259.9 244509 304.1 523203
Annual savings 0 0 76.5 .~3~1~ 32.3 55509
No annual savings are predicted for continuing with the present HVAC system.
1 The Existing HVAC figures are from the HVAC Report Revision 1 and are based on 24 hour/day operation.
2 Twelve hours per day, six day per week operation.
Answe?s to your questions are based on the tables attached and are itemized below:
1. Reduction in energy usage by changing the units and adding an economiser with an EMS and changing operating
hours from 24 hours per day to 12 hours per day equals 77% based on the proposed useage over the baseline. 100 X
(1068475 - 244,509 kwhr) / 1068475 kwhr = 77%. The savings is so great because it includes more efficient
HVAC units, economiser and an energy management system to mm offthe units when not in use.
2. Reduction in energy usage by adding an EMS only at 12 hour per day 6 days a week. = 51%
EMS energy savings of EMS only = Baseline Energy Use - proposed usage w/EMS Only
= 1,068,475kwhr - 523,203 = 545,272 kwhr
545,272 / 1,068,475 = 0.51 This decrease is to be expected because the units will be operating less than
half the time of the basline energy use of the existing HVAC.
3. Estimated reductions in energy costs ~ $0.10 per kilowatt hour = $82,397 per year for the new HVAC units with
economiser and EMS =(1068475 - 244509) = 823966 ~ $0.10 kwhr = $82,397.
From item 2. above energy savings =545,272 kwhr x 0.10 = $54,527/year for the EMS Only system with
reduction of operations to twelve hours per day.
5. Estimated Payback Time for two scenarios:
HVAC w/Economizer and EMS EMS Only:
HVAC w/Econo, and EMS = $1,044,000 capital cost EMS Only= $500,000 capital cost
w/out rebate payback =$1,044,000 / $82,397=12.7 years w/out rebate payback=$500,000/$54,527=9.2 years
6. The EMS can be installed before the HVAC unit replacement. However, each of the units will need to be
upgraded to accomodate the latest Energy Management system control technology. Costs provided in the HVAC
Report Revision 1 will need to be increased to $500,000 to retrofit the existing units and allow interface w/the
EMS.
I trust that this addresses your concerns. Please do not hesitate to call us if you have any questions.
Sincerely,
Timothy Bingham P.E.
ED W 4RD B. W 4RD & CO.
BETTER AIR CONDITIONING FOR EVERYBODY EYERYWNEkE 337 ROEBLING ROAD
SOUTH SAN FRANCISCO, CALIF. 94080
PHONE: (650) 873-1660
May 7, 2002 FAX: (650) 873-6829
RECEIVED
City of Dublin ~Y
100 Civic Plaza i::)USLIC
Dublin CA 94568
! Attn: Ginger Russell
~ Subject: Replacement of Carrier rooftop air conditioning units, Dublin Civic Center
Dear Ms. Russell,
Please accept this letter as a proposal to pre-order eleven new Carrier rooftop
multizone air conditioning units (AC 1-11) for the Dublin Civic Center HVAC
replacement project. As we discussed the order can be turned over to the successful
contractor at bid time or purchased directly by the City of Dublin.
Carder is phasing out future production of this type of units at the end of the 2002
cooling season. Replacement units must be ordered against Carrier by June 14, 2002.
These units are identified by the 48MA nomenclature used on the existing units and have
been selected and designed in to engineered drawings by Henry A. Meyer & Associates
Consulting Engineers of Dublin Ca. Their drawings are dated 3/18/02 and numbered M.0
through M.8.
The new units are the same dimensionally and capacity-wise as those they intend
to replace but do have internal component changes that render them more efficient than
the old.
The contractor cost for these eleven units is $ 413,565.00 (four hundred thirteen
thousand, five hundred sixty five dollars and no cents). They will be shipped full freight
allowed to City of Dublin. Current leadtime is approximately forty working days plus
travel from Tennessee.
Ginger Russell
Page 2
May 7, 2002
We will need a delivery date at time of order. If we consider forty working days
and travel as approximately two and a half months, your delivery date from June 14th
would be approximately Sept. 1st, 2002. If ordered sooner, we could shoot for an earlier
delivery date.
To summarize, the (11) units consist of (1) fifteen ton unit (tons of cooling
capacity), (2) twenty ton units, (4) twenty-five ton units and (3) twenty seven and a half
ton units.
The controls portion of the project (uninstalled) is an additional $ 39,750.00 but is
not subject to the same order deadline as the units themselves. This is also at contractor
cost.
If required or requested, special M.W. Sausse Co. spring vibration isolation rails,
to overcome any problems in the past with noise or vibration transmission from the
rooftop units to the structure, can be provided at a total contractor cost price of
$19,347.00'.
Please advise what else I can do to be of assistance. My office phone number in
Pleasant~is (925) 426-2306, cell (510) 502-4016, e-address is rralph7764¢~,aol.com.
l!
Best r~
Bob Ralph
Sr. Sales Engineer
CC: Henry Meyer & Associates 4~ :~ ~5~'~'~-- ~¢L~v.~ ~
H E N RY M E~ER~:~ :ASS O C IATES
'1 ;1.852 Dublin Blvd. Dublin, CA 94568
PH (925) 828-2920 FAX (925) 828-
5034
Ginger Russell
Administrative Analyst
Public Works DePartment
City of Dublin
Dublin, CA
Subject: Alternative Costs to City Hall/Police HVAC Upgrade
1. An alternate to reuse the existing units as fan coils with the
addition of chillers and boilers to provide heating and cooling. Re
heat coils and piping to be installed additionally in the individual zones
follows:
Demolition and installation of new coil units $120,000
$12,000 per unit
Chiller at each Fan coil unit xlO @ $24,000 $240,000
Boilers with reheat and pipe at each zone $1,700,000
.(58 zones)
Total $2,060,000
Henry Meyer P.E,
5-21-02
Title-24 Calcs · Mechanical & Electrical Engi-
RESOLUTION NO. - 02
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
AUTHORIZING WAIVER OF COMPETITIVE BID
PURCHASE OF HEATING, VENTILATING, AND AIR CONDITIONING (HVAC) UNITS
CIVIC CENTER HVAC REPLACEMENT PROJECT
WHEREAS, the City of Dublin proposes to contract for replacement of rooftop HVAC units at the
Civic Center building; and
WHEREAS, the equipment to be installed is proposed to fit the size and configuration of existing
equipment to avoid additional expense involved with ducting changes and mOdifications to the roof of the
building; and
WHEREAS, Carrier CorPoration is the sole source of supply for the units configured as required
and Edward B. Ward and Company is the sole San Francisco Bay Area wholesale source of supply for
Carrier CorPoration equipment; and
WHEREAS, the ordering deadline for obtaining the equipment is June 14, 2002, which is prior to
the time that plans and specifications would be available for contractors able to bid the installation work
for the project; and
WHEREAS, the City therefore needs to pre-order the equipment from Edward B. Ward and
Company as a sole source of supply;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin authorizes
issuance of a purchase order to Edward B. Ward and Company for purchase only of HVAC units and
appurtenant devices under Municipal Code Section 2.36.050 (A) (2), at a quoted price of $511,657.
PASSED, APPROVED AND ADOPTED this 4th day of June, 2002.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
g.',rniscprofihvac,resowaiver ATTAOH ENT 6