MEMORANDUM 08-111

To: Walt Wrede, City Manager

From: Carey Meyer, Public Works Director

Date: August 5, 2008

Subject: HERC II - Boiler Replacement

Design Contract Approval

The City’s 2007 budget included funds to replace the boiler in the building housing the Boy’s and Girls Club. The boiler was manufactured in 1948; the company that manufactured it went out of business in 1960; and the boiler is considered a “museum piece”. Replacement of this boiler will reduce dramatically heating costs for this building.

Public Works has determined that some engineering is required to facilitate the replacement of this boiler. Plans and specifications will be required to competitively bid the replacement work. There is a good chance that there is asbestos in the boiler and an asbestos abatement specification will be needed.

Public Works has utilized EDC, Inc. (Anchorage, AK) to accomplish electrical and mechanical work similar in the size to this project successfully and recommends that this firm be utilized to complete this boiler replacement design work.

EDC, Inc. has submitted a proposal to complete a site visit, recommend efficient oil-fired boiler replacement, prepare plans and specifications, obtain Fire Marshall approval, and inspect the completed work. Public Works has reviewed this proposal and finds it complete and reasonable. The fee to complete this work is estimated to be $10,000, not to be exceeded without prior written approval.

Public Works will contract directly with an asbestos abatement firm to determine whether the existing boiler contains asbestos and how it will be treated during boiler replacement (estimated cost $2,700).

Recommendation: The City Council should approve the award of the above described contract with EDC, Inc. (Anchorage, AK) for the design of the boiler replacement in the amount of $10,000 and authorize the City Manager to execute all appropriate documents.