Title
Approval of Services Agreement No. AGR 24-44 with R and M Construction, LLC in an Amount Not to Exceed $2,708,698.19 plus Applicable Gross Receipts Tax for the Ice Rink Chiller Replacement Project and Establish a Project Budget in the Amount of $2,900,000.00
Recommended Action
I move that Council approve Services Agreement No. AGR 24-44 with R and M Construction, LLC in an Amount Not To Exceed $2,708,698.19 plus applicable Gross Receipts Tax for the Ice Rink Chiller Replacement Project and Establish a Project Budget in the Amount of $2,900,000.00.
County Manager's Recommendation
The County Manager recommends that Council approve the motion as presented.
Body
After 21 years in service, the ice rink refrigeration system began exhibiting various and multiple malfunctions that made it difficult to maintain ice over the previous 2022-2023 ice skating seasons. Given the high cost of repair, difficulty to find discontinued replacement parts and the unreliability of the entire refrigeration plant, staff found that a new long-term refrigeration system replacement was required.
Since the beginning of the ice melting issues during the 2022 - 2023 skating season, the Public Works Department, in coordination with the Community Services Department, has been actively working on a long-term refrigeration system replacement. Public information about the project and a proposal to install a temporary chiller at the ice rink was presented to Council on August 8, 2023 and to the Parks and Recreation Board (PRB) on September 14, 2023. On April 23, 2024, during the budget hearings, the County Manager and the Public Works Director informed Council of plans to procure a long-term replacement of the refrigeration system. Lastly, on May 9, 2024, staff updated the PRB on progress and estimated timeline of the project.
During this time, staff also researched replacement refrigeration system characteristics that will enable the County to provide reliable ice-skating services to the public. As part of this process, staff consulted refrigeration and ice rink literature, federal regulations on the use of refrigerants including the health, safety, environmental impacts and sustainability regarding various forms of refrigerants. Staff also interviewed ice rink owners/operators and mechanical contractors around the country to inquire about the type, performance and maintenance of their refrigeration system. In addition, staff researched options and costs of refrigeration systems associated with ice rinks and arenas. With this information, staff determined that the ice rink requires a custom designed, industrial grade, refrigeration system to meet the following requirements:
- Ample cooling capacity to reliably make and maintain ice under the following conditions:
- Los Alamos County outdoor rink is located further south and in a warmer climate than most outdoor ice rinks in the US.
- Outdoor/Unsheltered ice sheet
- High elevation - high solar radiation
- Air-cooled condenser unit to conserve water
- Sized to fit in the existing mechanical room to reduce overall project cost
- Utilize the existing electrical service
- A minimum service life of 30 years
- Availability of maintenance and service providers
- Schedule construction to avoid down time or disruption to the skating season
- Utilize a refrigerant not listed in any of the EPA phase out schedules to adhere to best practices for atmospheric protection
- Good balance between refrigeration capacity, energy efficiency, and environmental friendliness
With these criteria in mind, an ammonia refrigeration system offered the most advantages to meet the above requirements in addition to being the most sustainable and environmental friendly option available. Subsequently on June 1, 2024, the County advertised RFP24-44 Los Alamos Ice Rink Refrigeration System Replacement and Mechanical Room Upgrades to solicit proposals to design and build a custom ammonia refrigeration system including upgrades to the mechanical room. Four potential respondents attended the non-mandatory pre-proposal conference, and one proposal was received on the closing date of June 27, 2024. The respondent was R and M Construction LLC, a New Mexico resident contractor, in collaboration with Modern Mechanical Ice Systems LLC, a Minnesota based contractor with over 100 years of combined experience and over 48 projects specializing in custom ice rink refrigeration systems. The proposal was reviewed and deemed responsive.
The services agreement, Attachment A, provides for the necessary labor, materials and equipment for the design, construction, quality control, functional testing, delivery, installation, and startup of a long-term refrigeration system replacement. The work includes upgrades to bring the mechanical room up to health and safety codes, and one year of equipment maintenance.
Upon contract execution, work shall begin after issuance of Notice to Proceed and shall achieve Substantial Completion by October 24, 2025 to allow for ice making for the 2025-2026 skating season. The Project shall achieve Final Completion by December 26, 2025. The design phase of the project is expected to last 3 months. Ordering of long lead time components will take place in the middle of the design phase. The production phase will begin at the end of the design phase and last 6 months. Production quality control and testing activities will be performed during this phase. The installation phase will commence once the long-term replacement refrigeration system arrives at the ice rink at the end of the production. This phase is expected to last 3 months and will include work to install the upgrades to the mechanical room. Finally, start-up of the long-term replacement refrigeration system for ice production will occur at the end of the installation phase.
As the existing ice rink floor nears the end of its expected 25-year service life, the County is moving forward with a separate phase of ice rink improvements programmed in the Capital Improvements Program (CIP) that includes replacement of the ice rink floor and a possible shade structure. A Request for Proposals (RFP) is currently being drafted for the ice rink floor replacement and the planning/alternatives analysis and possible design and construction of a shade structure. The advertisement of this RFP is anticipated in late 2024.
Alternatives
Council could choose not to approve the contract. However, any delay may result in additional project costs associated with retaining the temporary chiller services past the spring 2025, or the inability to offer ice skating seasons for years to come.
Fiscal and Staff Impact/Planned Item
Funding in the amount $2,400,000 of FY 2024 and FY 2025 Capital Improvements Program (CIP) funds are budgeted and available for the project. These CIP funds are comprised of a portion of the $1,485,000 budgeted in FY 2024 and $5,000,00 budgeted in FY 2025 for replacement of the ice rink floor, shade structure and chiller.
Additionally, $500,000 of remaining FY 2024-2025 Major Facilities Maintenance (MFM) funds from the rental of the temporary chiller further supplement the project budget.
See Project Budget Spreadsheet (Attachment B).
Attachments
A - AGR 24-44 R and M Construction LLC
B - Project Budget Spreadsheet