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AGENDA BILL Agenda Item No. 5(C) Date: December 17, 2013 To: El Cerrito City Council From: Chris Jones, Recreation Director Bridget Cooney, Recreation Supervisor, Aquatics Jay Showalter, Aquatics Coordinator Subject: Pool Heaters Replacement ACTION REQUESTED Adopt a resolution authorizing the City Manager to enter into an agreement with Knorr Systems in an amount not to exceed $120,000 (with contingencies) to purchase and install one Lochinvar Aquas Model XPN1520 heater and one Lochinvar Aquas Model XPN801 heater to replace the existing heaters on each pool at the El Cerrito Swim Center. BACKGROUND AND ANALYSIS Since the re-opening of the pool in 2004, the Swim Center has experienced multiple problems with its pool heaters, including lack of durability. The heat exchangers for the current pool heaters have failed consistently approximately every 18 – 24 months. When staff relayed the amount of time between heater failures to colleagues at a recent meeting of the Bay Area Public Pool Maintenance Operators (a gathering of maintenance operators from over twenty Bay Area Pools) it was clear that this timeframe was significantly below what others have experienced at their pools. Heater warranties generally range from five to ten years which is another indication that the 18- 24 month lifespan of our heat exchangers is not typical. Our current heat exchangers fail by bowing in the middle after exposure to the high heat produced by the heater. This causes the heat exchanger to pull apart from the cast iron heads resulting in the eventual catastrophic failure of the heat exchanger. Other internal portions of the heater are also affected by the resulting water leaks. The cost of replacement and installation each time a heat exchanger fails is approximately $8,000 to $15,000. To date, the City has spent approximately $80,000 since 2006 for the purchase and installation of new heat exchangers. In addition, the pool closures caused by the failed heat exchangers result in lost revenue to the Swim Center in pool visits and refunds provided to customers for cancelled classes and programs. Staff consulted with various experts and pool operators in the Bay Area with similar issues to determine the best course of action for remediating the issue of failed heat exchangers. Based on their advice and the fact that the heat exchanger failure is likely due to multiple issues, staff believes that the best course of action is to replace the City’s ---PAGE BREAK--- Agenda Item No. 5(C) Page 2 current pool heaters with ones that utilize an external heat exchanger. This heater technology, which is relatively new, will eliminate many factors that can cause early heat exchange failure as explained in greater detail below. In California, there are two main distributors of commercial pool heaters, Knorr Systems and Lincoln Aquatics. Through an informal bid process that complies with the Uniform Public Construction Cost Accounting Act, staff solicited bids for heaters with external heat exchangers from these two companies as well as San Jose Boiler Works. The results of this bid process are identified in Table 1 below. Table 1 – Pool Heater Types and Costs Vendor Type of Heater Cost of Heater & Installation Knorr Systems Lochinvar Aquas XPN $99,223.38 Lincoln Aquatics Raypak XTherm Boiler $75,242.61 San Jose Boiler Works RBI Fusion Condensing Boiler $149,958.00 The bid from San Jose Boiler Works was eliminated from consideration due to its high cost. However, staff is proposing to accept Knorr System’s bid rather than the less expensive bid from Lincoln Aquatics because the Aquas XPN heaters will deliver the best value to the City in terms of durability. As staff discovered during the informal bid process, the Aquas XPN series of heaters by Lochivar is currently the only pool heater with a true external heat exchanger and, in California, Knorr Systems is the sole vendor of this heater. The Raypak XTherm Boiler, proposed by Lincoln Aquatics, does have an external heat exchanger, however, it is a secondary heat exchanger designed to capture wasted heat from the primary internal heat exchanger. The external heat exchanger on this model exists primarily for heater efficiency purposes, not for durability. The primary heat exchanger, which is also cupro-nickel remains exposed to direct fire similar to the current heaters. The fact that the Raypak XTherm Boiler’s primary exchanger is internal leaves this heater more vulnerable to the issues affecting the City’s current heaters, leaving the Lochinvar Aquas XPN heaters as the best choice. As a general rule, properly maintained, chemically treated pool water is extremely hazardous to boiler systems. The advantage of the proposed heaters, the Lochinvar Aquas XPN, is that these heaters have primary external heat exchangers. This means that the heat exchanger keeps the pool water separated from the direct fired heat. Isolating pool water from the internal areas of the heaters eliminates the chemical-heat reaction problems that plague most boiler systems. The Lochinvar Aquas XPN also comes with titanium heat exchangers, a much more durable metal than the cupro-nickel exchangers found in the other bid heaters as well as the City’s current pool heaters. The durability of the titanium and the removal of the heat exchangers from the direct heat ---PAGE BREAK--- Agenda Item No. 5(C) Page 3 will make them less likely to fail as the current heat exchangers do and will also better protect the other internal portions of the heater from leaking water. The installation of new heaters will also address a concern that the current heaters may not have been properly bonded or grounded to protect the heaters from stray currents or electrolysis. On June 18, 2012, the City Council adopted the Fiscal Year 2013-14 Budget. Included in this approval was Capital Improvement Project C5030 with funding for capital upgrades or enhancements at the El Cerrito Swim Center. There are sufficient funds in this year’s budget for this project. ENVIRONMENTAL CONSIDERATIONS The current pool heaters at the El Cerrito Swim Center have an energy efficiency rating of 85% to 89% efficiency for gas going directly toward heating the pool water. The remaining 11% - 15% of energy used results in higher gas usage and therefore higher cost. The proposed new pool heaters, the Lochinvar Aquas XPN, operate at an energy efficiency rating of 97%. This means that 97% of the gas used goes directly towards heating the pool water with only 3% of the energy wasted. Additionally, greater energy efficiencies may be possible with the Variable Speed Drive that regulates the pool water flow in an energy saving manner. The current heater set-up precluded additional energy efficiency enhancements that have been implemented at other public pools. Approval of the agreement is exempt from the California Environmental Quality Act (“CEQA”) under the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment, and in this case, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. (14 Cal. Code Regs. (“CEQA Guidelines”) § 15061(b)(3).) Additionally, it is categorically exempt under CEQA Guidelines section 15301, because the work includes maintenance, repair, and minor alterations of existing facilities. STRATEGIC PLAN CONSIDERATIONS Approval of the proposed purchase and installation of the Lochinvar Aquas XPN pool heaters would help fulfill the following City of El Cerrito Strategic Plan Goals: Goal B: Long-term financial sustainability will be increased by significantly reducing the amount of money spent on pool heater maintenance and repairs. Great heater efficiency will also result in decreased utility costs. Goal D: Ongoing maintenance of the pool heaters will decrease significantly. Goal F: Environmental sustainability is increased with greater energy efficiency. ---PAGE BREAK--- Agenda Item No. 5(C) FINANCIAL CONSIDERATIONS The current heaters at the El Cerrito Swim Center are rated at an energy efficiency of 89%. The proposed Lochinvar Aquas XPN heaters are rated at an energy efficiency of 97%. The anticipated average energy savings. is approximately $15,000 per year for the competition pool and $5,000 per year for the recreation pool. Additional savings of approximately $5,000 per year will also be seen as a result of the lower servicing requirements of the Lochinvar Aquas XPN heaters compared to the Swim Center's current heaters. Total annual savings as a result of installing the proposed heaters is approximately $25,000 per year. Staff is proposing the authorization of an approximately 20% contingency fund, bringing the total authorized amount to $120,000. There may be unforeseen repairs, adjustments, and/or additional parts needed once the current heaters are removed. Capital Improvement Project C3050 is funded by the Measure A Parcel Tax approved by voters in 2000. The City Council has approved surplus funds generated by Measure A to be used on Swim Center capital projects. LEGAL CONSIDERATIONS The City Attorney has reviewed proposed actions and found that legal considerations have been addressed. Sole source procurement is authorized for the pool heater replacement project pursuant to Public Contract Code § 3400 which permits the procurement of particular materials or products where available only from one vendor. Here, the Lochinvar Aquas heaters are available only from Knorr Systems. Reviewed by: LTL· Scott Hanin, City Manager Attachments: 1. Resolution 2. Informal Bid Proposals 3. Sole Source Letter from Lochinvar 4. Industry Testimonials for Lochinvar Aquas Heaters Page4 ---PAGE BREAK--- Agenda Item No. 5(C) Attachment 1 RESOLUTION 2013-XX RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO AUTHORIZING THE CITY MANAGER OR DESIGNEE TO ENTER INTO AN AGREEMENT WITH KNORR SYSTEMS FOR THE PURCHASE AND INSTALLATION OF ONE LOCHINVAR AQUAS XPN1520 HEATER AND ONE LOCHINVAR AQUAS XPN801 HEATER FOR AN AMOUNT NOT TO EXCEED $120,000.00 WHEREAS, the current pool heaters at the El Cerrito Swim Center have, on average, failed every 18-24 months since the Swim Center’s opening in 2004; and WHEREAS, this failure rate is well below the industry standard and comes at considerable cost to the City; and WHEREAS, staff, in consultation with various pool experts and operators have determined that the best course of action would be to purchase more durable heaters with external heat exchangers; and WHEREAS, the City is subject to the to the Uniform Public Construction Cost Accounting Act, Public Contract Code § 22000, 22032(b), which authorizes the City Council the use of an informal bid process for projects that do not exceed $175,000; and WHEREAS, this project is also exempt from the competitive bidding requirements pursuant to the established common-law doctrine articulated in the case of Graydon v. Pasadena Redevelopment Agency (1980) 104 Cal.App. 3d 631 because the purchase of this equipment is determined to be necessary to serve the best interests of the City; and WHEREAS, staff received three proposals in an informal bid process for new pool heaters and staff finds Knorr System’s bid as the most qualified company to provide these items; and WHEREAS, sole source procurement is authorized for the pool heater replacement project pursuant to Public Contract Code § 3400 which permits the procurement of particular materials or products where available only from one vendor; and. WHEREAS, the Lochinvar Aquas heaters are available only from Knorr Systems; and WHEREAS, the City Council finds that approval of the agreement is exempt from the California Environmental Quality Act (Public Resources Code 21000 et seq., “CEQA,” and 14 Cal. Code Reg. 15000 et seq., “CEQA Guidelines”) under the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment, and in this case, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment (CEQA Guidelines § 15061(b)(3). Additionally, approval of the Agreement is categorically exempt from CEQA under CEQA Guidelines section 15301 (maintenance, repair, and minor alterations of existing facilities). ---PAGE BREAK--- Agenda Item No. 5(C) Attachment 1 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of El Cerrito hereby authorizes the City Manager or his designee to enter into an agreement with Knorr Systems for the purchase and installation of one Lochinvar Aquas Model XPN1520 and one Lochinvar Aquas Model XPN801 not to exceed $120,000 which amount is the total of Knorr System’s bid of $99,223.38 plus an additional $20,776.62 contingency fund for unforeseen repairs and/or parts to facilitate the installation of the new heaters. I CERTIFY that at the regular meeting on December 17, 2013, the El Cerrito City Council passed this resolution by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ABSTAIN: COUNCILMEMBERS: IN WITNESS of this action, I sign this document and affix the corporate seal of the City of El Cerrito on December XX, 2013. Cheryl Morse, City Clerk APPROVED: Janet Abelson, Mayor ---PAGE BREAK--- 610 Stockton Avenue San Jose, CA 95126 Phone (408) 295-5235 Fax (408) 295-6365 packets 2013\12-17-13\5c pool heaters - att 2a sj boiler bid.doc Thursday, December 12, 2013 10:02 AM Contractors License # 307847 Date: 12/13/11 Quotation #GE-121311-E City of El Cerrito Attn: Jay E-mail: [EMAIL REDACTED] Re: Pool boiler replacement As we discussed, the best option for this kind of installation is a copper fin boiler and a separate plate & frame heat exchanger. Although you lose a little in heat transfer efficiency, keeping the pool water separated from the boiler will extend the life of the boiler. While titanium plates are recommended by the manufacturer for pool applications, we have used standard stainless steel plates with good results. You expressed interest in high efficiency condensing boilers which won’t really have an effect on the “life-span” issue, but will change the sizing of the heat exchanger and may result in reduced fuel usage. I have quoted all these options and will try to keep them from getting too confusing. Competition pool Condensing boiler: RBI Fusion CP2000 with SS plate and frame heat exchanger. Total for materials and (for titanium plates, Non-Condensing boiler: RBI Futera II-2000 with SS plate and frame heat exchanger. Total for materials and (for titanium plates, Instruction pool Condensing boiler: RBI Fusion CP1000 with SS plate and frame heat exchanger. Total for materials and (for titanium plates, Non-Condensing boiler: RBI Futera II-1000 with SS plate and frame heat exchanger. Total for materials and (for titanium plates, We would do as much pre-piping here in the shop as possible to limit down-time, but we’re still probably looking at 10 working days to complete the installation. Agenda Item No. 5(C) Attachment 2(a) ---PAGE BREAK--- 610 Stockton Avenue San Jose, CA 95126 Phone (408) 295-5235 Fax (408) 295-6365 packets 2013\12-17-13\5c pool heaters - att 2a sj boiler bid.doc Thursday, December 12, 2013 10:02 AM Work to be performed during normal working hours (M-F/7:30AM-4:00PM) unless otherwise agreed. Please let me know if you have any questions. Notes: Prices are good for 30 days from the date of this quotation. Beyond that, please call to confirm pricing. Prices do not include installation of equipment, unless otherwise noted. Prices do not include sales tax, unless otherwise noted. If there is any suspicion of asbestos in the area in which we will be working, it must be abated by a certified abatement company before we begin any work. SJBW does not provide pipe and or tank insulating services as part of our installations or repair work. However we can offer a number of companies that perform this type of work in order to save the end user (customer) money and avoid the unnecessary sub contract mark up. Please feel free to contact our office for a list of insulating contractors. Any required permits are not included and are the responsibility of others, unless stated otherwise in this quotation. Payment terms: Net 30 days on approved credit. First-time and large dollar amounts will require 50% or 100% payment prior to release of order, per factory standard policy. Sincerely, Accepted By: Please Print: Garen Edwards Purchase Order # ---PAGE BREAK--- Item No. Description Unit Quantity Unit Price Total Price 21-670 Raypak XTherm 2,000,000 BTU heater, natural EACH 1 $29,595.00 $29,595.00 21-000 CAl Code Equipment EACH 1 $265.00 $265.00 21-000 PVC Venting EACH 1 $365.00 $365.00 21-650 Raypak XTherm 1,000,000 BTU heater, natural EACH 1 $21,930.00 $21,930.00 21-000 CAl Code Equipment EACH 1 $265.00 $265.00 21-000 PVC Venting EACH 1 $365.00 $365.00 NAS-LABOR NAS-Labor Installation complete with demolition and removal of old equipment 1 $16,975.00 $16,975.00 ACTUAL Actual Freight 1 $600.00 $600.00 Lincoln Equipment, Inc. 2051 Commerce Avenue Concord, CA 94520 Phone: [PHONE REDACTED] Fax: [PHONE REDACTED] S A L E S Q U O T E Sales Quote Number: WQ48123 Sales Quote Date: 12/5/13 Page: 1 Sold To: El Cerrito, City of Bridget Cooney 10940 San Pablo Avenue El Cerrito, CA 94530 Ship To: El Cerrito, City of Bridget Cooney 10940 San Pablo Avenue El Cerrito, CA 94530 Ship Via Ship Method Terms Sales Person UPS GRD FOBO NET30 Craig Powell/209/527-3566 Customer ID Cust Phone Cust Fax ECC10 510/215-4310 510/215-4319 To approve or review this quote, please contact your sales rep at the number shown above. You can also phone us at: [PHONE REDACTED] To expedite orders, please include Quote Number with purchase order. Orders placed after the expiration date may be re-quoted. Freight quotes good for 30 days. Submitted By: Accepted By: Amount Subject to Sales Tax 52,785.00 Amount Exempt from Sales Tax 17,575.00 Subtotal: Invoice Discount: Total Sales Tax: Total: 70,360.00 0.00 4,882.61 75,242.61 Agenda Item No. 5(C) Attachment 2(b) ---PAGE BREAK--- Date: To: From: Project: SECTION QTY PRICE EACH EXTENDED TOTAL Lap Pool Indirect Heating System 1 49,168.00 49,168.00 (510) 559-7008 [EMAIL REDACTED] George A. Olinger El Cerrito Swim Center Aquas 97% Efficient Indirect Heating System Proposal EQUIPMENT QUOTATION DESCRIPTION Lochinvar AQUAS model XPN1520 natural gas 97% efficient indirect swimming pool heating system, each system includes: skid mounted 1.5 million Btu boiler with Smart System touch screen controls, 2.0 million Btu Titanium heat exchanger with 5 year warranty and CPVC connections, two primary boiler water circulating pumps, and each system is factory tested and certified ASME constructed. Complete package includes installation diagram and support, factory s stem commissioning and ope ato t aining b ce tified November 6, 2013 Jay Showalter City of El Cerrito, El Cerrito Swim Center 1 Recreation Pool Indirect Heating System 1 24,236.00 24,236.00 Installation Labor 1 9,600.00 9,600.00 Installation Materials 1 6,800.00 6,800.00 Subtotal $80,204.00 Sales Tax $7,619.38 Installation Labor $9,600.00 Freight $1,800.00 Total $99,223.38 system commissioning and operator training by certified Lochinvar technician from Knorr Systems. Lochinvar XLP Pool Heater Package model XPN801 (800,000 BTU input each), with; Condensing Boiler design with ASME construction, external Titanium heat exchanger with 5 year warranty, up to 97% thermal efficiency, low NOx operation, adjustable high limit w/ manual reset, flowswitch, relief valve, temperature and pressure gauge, and factory supplied sidewall vent termination. Includes factory start up and operator training. Installation of two Aquas Indirect Heating Systems. Removal and disposal of existing heating systems. Modification of existing recirculation system plumbing to match external heat exchanger plumbing. Modify heating system loops. Installation of new PVC venting systems and terminate through the existing roof penetration. Modify existing gas lines to new point of connections. Install domestic water lines for hydronic loop fill. Installation materials to install two Aquas Indirect Heating Systems. Provide all plumbing materials including pipe, fittings, and valves. Modify existing electrical feeds to the new equipment. Provide factory authorized start-up and training for a complete turnkey system. 1 Agenda Item No. 5(C) Attachment 2(c) ---PAGE BREAK--- Terms and Conditions Payment Terms: Interest: Freight: Sales Tax: Notes: Pricing is valid until February 4, 2014 Start-Up: Mechanical equipment start-up (as noted on each equipment item) 18% APR is charged on all past due invoices. FOB equipment ship point, see above for estimated freight charges. Subject to sales tax rate as noted above. Pricing excludes plan check and Health Department permit fees. Pricing excludes Bid / Payment / Performance bond fees. Net 30 days after date of invoice, subject to credit approval is provided at no charge by KSI's Service Department. Please review the quote for accuracy. If acceptable, please sign and provide a purchase order number, if applicable, and return via fax, (925) 273-0726, or email, Thanks, George Olinger PRINT NAME DATE APPROVED BY PO # 2 ---PAGE BREAK--- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . November 6, 2013 Mr. Jay Showalter CITY OF EL CERRITO VIA EMAIL: [EMAIL REDACTED] Re: AQUAS™ Pool Heating Systems Dear Mr. Showalter: Lochinvar Corporation is the sole manufacturer of the AQUAS™ pool heating system. For your review, I've attached our written technical specifications outlining the complete AQUAS™ system and components. It has been and will continue to be Lochinvar's policy to utilize factory trained and certified representation to promote, sell and service our line of heaters. Lochinvar places significant importance on selecting the most qualified aquatic pool professionals in each marketplace to represent our pool heaters. All of our selected distributors must meet our education and training standards. This letter will serve to confirm our master swimming pool heater distributor, Knorr Systems, Inc. for the State of California. We have chosen this company due to their expertise, knowledge and excellent reputation in the industry. We acknowledge that Knorr Systems technicians have been trained and certified in all aspects of the AQUAS™ pool heater systems. If you have further questions or need additional information, please don’t hesitate to contact me. Sincerely, Rich Murphy Rich Murphy National Sales Manager, Pool Division RM:blc 16 Petty Road Sanford, NC 27330 [PHONE REDACTED] [PHONE REDACTED] Fax SOLUTIONS FOR AQUATIC HEATING Agenda Item No. 5(C) Attachment 3 ---PAGE BREAK--- Agenda Item No. 5(C) Attachment 4 Industry Testimonials Mills College Trefethan Aquatics Center - Oakland, CA From: Carol Berendsen [[EMAIL REDACTED]] Sent: Thursday, September 12, 2013 1:15 PM To: Jay Showalter Subject: Re: Pool Heater Questions Our heaters are GREAT! The first year we reduced our gas costs by 50%. It's better now that we have replaced/repaired all of our pool covers. Approval came because we were running on one of three boilers for about 6 months and our water temperature was all over the place with swings of up to 7-8 degrees in 24 hours. We have a VP of Campus Facilities who determines what the priorities are and makes the decisions on the product. I think Knorr may have swayed her toward the Lochinvar. Best, Carol New Port-Mesa USD, Costa Mesa High School Pool – Costa Mesa, CA From: Jeff Amend [[EMAIL REDACTED]] Sent: Monday, September 16, 2013 8:27 AM To: Jay Showalter Subject: RE: Pool Heater Questions Good morning Jay, I need to answer your last question first. We were the first to receive these heaters; we were a BETA test site for them so we received a significant discount for that. Also we have been working with Knorr and Lochinvar for at least 20 years; they are both a reputable companies and have taken very good care of us. That should answer your last two questions. With that said with the exception of some minor bugs in the beginning the heaters have been flawless and in my estimate about 20% more efficient than our old Lochinvar heaters. I love the new heaters. Lochinvar and Knorr have both been out several times to check and inspect them and their service has been excellent. When AQMD comes out to inspect all of our boilers all they do is stick their head in the door and when they see the Lochinvars they just move on to the next boiler room. We have 3 other 50 meter pools that have the older CPN boilers and when it comes time to replace them I plan to install the new Lochinvars there as well, they are good boilers and if you decide to go with Knorr and Lochinvar you won’t be disappointed. You may think that just because we received a discount that I say this but not true, we took a huge risk being a beta test site and when I tell you that they are good boilers my reputation is on the line ---PAGE BREAK--- Agenda Item No. 5(C) Attachment 4 Industry Testimonials and have nothing to gain by telling you otherwise. If you have any other questions or would like some pictures or would even like to visit our site and talk to my pool man please feel free, you can call my cell any time. Sincerely, Jeff Amend Pepperdine University, Raleigh Runnels Memorial Pool - Malibu, CA From: Perez, Raul Sent: Friday, September 13, 2013 9:39 AM To: Jay Showalter; Perez, Raul Subject: Re: Pool Heater Questions Jay, I am out of office until Monday. I scanned through your email and at first blush can tell you that we hired a pool systems engineering firm- Greg at Rowley International; this after a Request for Qualifications was sent out to potential firms. From the responses we solicited bids from 3 pool engineering firms. Greg submitted two options for us, Raypak being one. After comparing both models and interviewing different contractors, we went with the Aquas. They stacked up as far more superior in efficiency with easy access to heat exchanger. We repeated our process to select a contractor- Horizon Mechanical. They did an excellent job. Reason for project was had been experiencing early heat exchanger failures with previous boiler models. I recommend reaching out to Greg at Rowley if you'd like to know more. I can connect with mechanical staff when I get back to see what there take is on it. ---PAGE BREAK--- Agenda Item No. 5(C) Attachment 4 Industry Testimonials Cheers Raul Sent from my Samsung Infuse