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Home My WebLink About07/07/1992, C-4 - REPLACEMENT OF EXISTING HEATING VENTILATING AND AIR CONDITIONING (HVAC) SYSTEM AT POLICE STATION. uIIIIIuIAIlUlll v' r MEETI G D TE: ��uN01�p►� @yup cio san �a�s oB�spo - STEM NUMBER/ COUNCIL AGENDA REPORT FROM: Wayne Peterson, Acting Public Works Director �g �' .V; '�. .ti Y PREPARED BY: Lane Wilson, Parks and Buildings Superrvisor . Tom Harrington, Energy Coordinator / v SUBJECT: Replacement of existing Heating Ventilating and Air Conditioning (HVAC) system at Police Station. CAO RECOMMENDATION: 1) By motion; approve plans and specifications for the Police Station HVAC system improvements contingent upon recommendations, if any, from the Architectural Review Commission. 2) Authorize the solicitation of bids and contract award by the CAO if the lowest responsible bidder is within engineering cost estimates. DISCUSSION: In 1989 the Newcomb/Anderson Energy Efficiency Report for CITY facilities recommended that the HVAC system at the Police station be rebuilt to reduce energy costs and provide better working conditions. In January of 1992 Council authorized a contract with Brummel/Myrick Associates, a local engineering firm, to provide plans and specifications for the new HVAC system. Staff is prepared to advertise for construction bids. Much of the costs of this project are to replace existing equipment that no longer performs well and is near the end of it's anticipated period of service. Construction time estimate is 90 days, including manufacture of the rooftop unit and installation of the new system. Council approval is being sought concurrent with ARC processing to attempt to insure that the project can be completed by October 31 to capture the Utility rebate of $18, 600. Financial Management Manual section 207 provisions apply . here. CONCURRENCES: The Police Department concurs with the system and project as planned. In the interests of immediate action, Community Development and other staff are working concurrently with ARC to find a satisfactory solution to any potential visual impacts that may affect implementation. FISCAL IMPACT: DESIGN: $ 17, 500 ENGINEERING COST ESTIMATE: $153 ,896 CONTINGENCIES: (12%) $ 18 ,467 POTENTIAL TOTAL $189,863 In 1989 for the project cost estimates were $150, 000, including design and construction. Current design costs were $2 , 500 less than 1989 estimates. The current engineering estimate for construction is $153, 896 making the total $171, 396 for design and construction. Construction cost increases are due to inflation and three other. primary areas: 1) Demolition, on-site visits by engineers and contractors, have determined that demolition and removal of the old system would be more difficult and costly than estimated by Newcomb/Anderson in 1989. Result: $6,770 of additional estimated C�-1 ��n�i�H►�Ilillll�ll��u�q11U city of san LOWS oBispo COUNCIL AGENDA REPORT costs. 2) Mechanical /structural. the original engineering estimate was based on placing the unit over a portion of the roof that subsequent structural engineering has determined will not carry the increased load. Consequently, the unit needs to be placed near an end wall further from the point where ducts enter the building roof, resulting in $8, 000 added costs. Structural and roofing costs were above the 1989 estimate because current structural analysis calls for the rooftop support system to be connected to interior structural building members. Increased costs associated with these changes are $3000. However, because costs for 14 Variable Air Volume boxes that heat, cool and ventilate specific areas were lower, total cost increases for Mechanical/structural were only $626. 3) Controls. Proposed controls allow for complete, rather than partial, shutdown of non- use areas. Such. controls are commonplace to precisely regulate interior environments and minimize energy consumption. Added cost is $14,000. $18, 467 is included for potential visual impact mitigation and other contingencies. Excellent financial returns may qualify this project for low interest loans from the California Energy Commission. Energy cost savings and Utility rebate levels are substantially higher with the current design as shown in the table below. SYSTEM DESIGN CONSUMPTION TOTAL ANNUAL KWH/ THERMS COST / SAVED EXISTING SYSTEM 566, 500 13 , 450 $62 , 186 NEWCOMB ANDERSON 470, 826 4 , 940 $49, 661 ORIGINAL PROJECTED SAVINGS 1989 7 4 8 510 BRUMMEL/MYRICK DESIGN 236, 500 41930 $21, 631 CURRENT PROJECTED SAVINGS, 1992 3301OQO 9520 S4aS.,,5;55.: Note: Even in the face of the current fiscal crisis, this project should not be deferred. 1) the current construction market will assure very favorable competitive bidding, 2) each month's delay costs the City an additional $3 , 629 in energy and maintenance, 3) to delay even 2 weeks will probably negate the $18, 600 Utility rebate due to the long construction period, 4) the timing is excellent now to gain low interest financing from the California Energy Commission, 5) further delays may entail further expensive repairs. 6) continued aggressive energy management enhances City opportunities for State assistance. Even a 3 month delay means a minimum of $29, 487 lost to the City. FUNDS AVAILABLE: The approved 1991-92 budget designates $150, 000 for the project. An additional $39, 863 may be necessary from the Capital Outlay Fund. ATTACHMENTS: Financial analyses. Note: Plans and specifications are available in Council Office for inspection. B2158pdh.cw PDHVAC3 $ ANALYSIS . W/REBATE & CONTINGENCY 06-26-92 Project ID PDHVAC3 Project Name = Police Station HVAC replacement Scenario = BASE CASE payback Period . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . 7 .56 years ( 7 years 7 months Internal Rate of Return ( IRR ) . . . . . ... . . . . . . . . . . 16 .46 percent Net Present Value ( NPV ) @ 10 .00% Discount Rate . . . . . . . . . .. . .... . . . . . . . . . . . $83180 . Cost of Conserved Energy ( CCE ) @ 10 .00a Discount .Rate . . . . . . . . . . . . . . . . . . . . . .. . . $7 .46 per, MMBTU PDHVAC2 $ .ANALYSIS , W/REBATE .& NO CONTINGENCY 06-26-92 Project ID = PDHVAC. 2 Project Name = . Police Station H.VAC. replacement Scenario = BASE CASE Payback ,Period .•_ 6 .83 years ( 6 years 10 months Internal Rate of Return ( IRR ) . . . . . . . . . . . . . . . . . 18 .60 percent Net Present Value ( NPV ) @ 10.00% Discount Rate . . . . . . . . . . . . . . . . . . . . . . . $99969 . lost .of Conserved Energy ( CCE ) ,a_ 10 .00% 'Discount Rate $6 .55 per MMBTU e-4-3 ;uMulative Cash Flow ('5) 7°0000,0 W bAAAAA,A . ° 3 m 508089.0 ru o Doo 481810.0 m�. � D O IP m n D J ' mr 388118.8 280889.8 D n 111080,A m Pro 'ect Life (years) 610 . m 8 lA 15 2A ' 25ID -180000,A -200880,1 -380188.1 0 T T r N . i , )Mulative dash flow :(5) 0 D o 2 t 780988,8 I n n i; • O m 519101.0 m 110 O 408080.8 m y ° D mm � D M V N M 308181.9 O 281081,1 < D n 11809816 m Pro'ect Life (years) A.8 ° m 15 28 25 -lAWOA,0 =21W0A,e -3A�e1,e 0 T N m D N � / � C-5 1992 CHIP SEAL PROJECT (PETERSON/S-13A) Consideration of plans and specifications for the 1992 Street Chip Seal Coat Project, City Plan No. S-13A; Engineer's estimate: $177, 000. (Plans and specifications are available in the Council Office for review. ) - (Continued from 6/16/92. ) RECOMMENDATION: Agenda report to be sent under separate cover.