Title
Sportsplex Domestic Hot Water System Replacement - Proposal
History
In November 2014, the Village sought proposals from qualified Energy Services Companies (ESCOs) to conduct an investment grade audit of Village facilities and to implement an Energy Performance Contract. The Village at that time was initially interested in contracting for a full range of energy-related capital improvements at the Village’s Sportsplex and Cultural Center facilities.
In the RFP document, the following criteria were included:
a. The ESCO is required to provide comprehensive infrastructure and energy-related capital improvement services.
b. The ESCO must have the demonstrated technical and managerial capabilities to provide a comprehensive set of energy and water services including, but not limited to design, acquisition, installation, training and commissioning of new and/or existing energy systems, as well as, project monitoring and savings measurement and verification.
c. Monitoring and verification services shall include appropriate measurement and timely reporting of the performance of and savings from the project. ESCO must have the technical capability to address a broad range of systems including, mechanical systems, (HVAC) systems, lighting systems, building envelope systems, specialty systems, water and sewage systems etc.
d. The project must result in a guaranteed minimum annual energy, water, and operations and maintenance (O&M) savings, as well as defined levels of occupant comfort, maintenance, monitoring, training or other services. The guarantee is required to cover the cost of this service.
e. Additional services may include operation and maintenance for all improvements and/or training of Village staff on routine maintenance and operation of the installed systems.
At that time, an evaluation team consisting of staff, as well as Trustee Dodge, reviewed and evaluated all of the proposals.
During those evaluations, the first step in the process was to select an ESCO partner to conduct an audit. Once completed, the Village Board would then review individual projects on their individual merits for approval as they are brought forward.
Based on the committee discussion and the scoring tool, CTS Group received the top recommendation. At the June 1, 2015 Board of Trustees meeting, the board approved the authorization of CTS Group to conduct an Investment Grade Audit of Village facilities.
In September 2015, CTS Group gave their audit findings to staff. One of the findings of the audit that needed to be addressed immediately was the domestic hot water system at the Sportsplex. It was determined that the original configuration of the domestic hot water system was extremely inefficient and needed to be changed. A two-boiler redundant system provides hot water for both domestic use (showers, lavatories and sinks), as well as heat for the facility during winter months. Boilers, within this current configuration, must operate 365-days a year; even during summer months to provide hot water to the facility. Additionally, there are no temperature adjustment controls for hot water in the showers at the Sportsplex.
The initial plan was to include funding for this project in the FY2017 budget to replace the system. During a recent routine maintenance check of the boilers at the Sportsplex, staff discovered a leak in the heater coil bundle. The leak allowed superheated boiler water to mix with the domestic hot water supply. Staff immediately suspended hot water service. Staff received a proposal from a maintenance vendor indicating that replacement/repair of the heater coil bundle would cost upwards of $10,000. In addition to the costs, ordering of the parts and subsequent repairs/installation would take a minimum of 4 to 6 weeks to complete, leaving the Sportsplex without domestic hot water for an extended amount of time.
Rather than invest additional dollars into a system that was scheduled to be replaced in FY2017, staff was directed to collaborate with CTS to evaluate temporary options that could provide hot water to the Sportsplex. This temporary option was implemented on November 3rd. The discovery of the heater coil bundle leak also became the impetus for staff to evaluate the possibility of accelerating CTS’s recommendation to replace the domestic hot water system.
After discussions with administration, it makes fiscal and operational sense to initiate this project now. According to CTS, the project will require engineering, architectural work, permitting, plan review and construction.
The CTS Group has been stellar in their responsiveness and assistance with the previous evaluations and recent recommendations for the temporary hot water solution. Staff anticipates that CTS Group will handle the full implementation of the Sportsplex Domestic Hot Water System Replacement project. CTS Group would be responsible for all aspects of this project including bidding, vetting, engineering, and installation. Staff will continue to negotiate the final contract with CTS with a not to exceed cost of $489,500.
On November 7, 2016, this item was reviewed by the Public Works Committee and recommended for approval and referred to the Village Board of Trustees for consideration.
Financial Impact
Funding in the amount of $175,000 for Sportsplex building improvements was included and is available within the FY2016 Budget to complete this project. In addition, a transfer from contingency, in the amount of $14,500 is being requested. The remaining $300,000 will be funded by unreserved fund balance available in the Village’s General Fund; a budget adjustment for this amount is required.
Recommended Action/Motion
I move to approve waiving the bid process;
And
Approve transferring from the contingency fund in the amount of $14,500;
And
Approving a budget adjustment in the amount of $300,000;
And
Approve accepting the proposal from CTS Group for the Sportsplex Domestic Hot Water System Replacement project at a not-to-exceed cost of $489,500.