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CITY
OF
PUBLIC
WORKS TELEPHONE (907)235-3170
MEMORANDUM 09-85
To:
From:
Date: June 16, 2009
Subject: Boys
and Girls Club/KPC West Campus Bldg - Boiler Replacement
Alternative Solutions
Public Works has been
coordinating the replacement of the boiler in the above reference City
building. The City’s 2007 budget
included funds ($35,000) to replace the boiler.
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”. The boiler is not a dependable
source of heat for the building and could fail at anytime. The boiler (and some of the piping) is
encapsulated in asbestos insulation. Approximately $13,000 has been spent to
prepare bid documents for this project. Replacement of this boiler will reduce
dramatically heating costs for this building.
The cost of
replacing this boiler with a dependable boiler system and providing a long term
fix for this problem is estimated to be:
Engineering and
design: $13,000
Boiler/Asbestos
Removal: $36,000 (a long term fix
requires removal of the boiler and asbestos)
Twin Boiler
Installation: $60,000
Contingency (10%): $11,000
Total Project Cost -
$120,000
Alternatives:
Option 1 -
Install twin boilers in a temporary structure adjacent to building, leave
existing boiler in place, make piping connections without disturbing asbestos
Engineering and
design $20,000 (an additional $6,000)
Temporary Structure $ 8,000
Boiler/Asbestos
Removal: $ 0
Twin Boiler
Installation: $60,000
New Piping
Connections: $12,000
Contingency (10%): $11,000
Total Project Cost (Option
1) - $111,000
Option 2 -
Install a single boiler in the existing mechanical room, leave existing boiler
in place, make piping connections without disturbing asbestos
Engineering and
design $16,000 (an additional $3,000)
Boiler/Asbestos
Removal: $ 0
Twin Boiler
Installation: $35,000
New Piping
Connections: $
7,000
Contingency (10%): $ 6,000
Total Project Cost
(Option 2) - $64,000
Option 3 – Do
nothing, take chance that boiler will fail within 3 year period, deal with
implications then
Engineering and
design $13,000 (spent to date)
Boiler/Asbestos
Removal: $ 0
Boiler Installation: $ 0
New Piping
Connections: $ 0
Contingency (10%): $ 0
Total Project Cost (Option
3) - $13,000
Replacement of this
boiler will reduce dramatically heating costs for this building. Based on the fact that the City spends
$60,000 last year for fuel and that the new boiler(s) will be 25% more
efficient; the fuel savings with a new boiler might be $12,500 per year
($36,000 over three years)
Recommendation: The City Council should approve the use of Option 2 as described above to replace the existing boiler. The Council pass an ordinance adding $29,000 to the existing $35,000 budget for this project and authorize the City Manager to execute all appropriate documents necessary to complete the boiler replacement.