Title
Consideration and Possible Approval of Services Agreement No. AGR 23-955 with American Arena, LLC in an Amount Not to Exceed $450,000.00 plus applicable Gross Receipts Tax for Installation of a Temporary Chiller System at the Ice Rink.
Recommended Action
I move that Council approve Services Agreement No. AGR 23-955 with American Arena, LLC in an amount not to exceed $450,000.00 plus applicable Gross Receipts Tax for Installation of a Temporary Chiller System at the Ice Rink.
County Manager's Recommendation
The County Manager recommends that Council approve the motion as presented.
Body
In 2002, a new ice rink floor and equipment to create and maintain ice was installed. As the equipment has been in service for 21 years, it is reaching its serviceable life evident from various and multiple equipment malfunctions that made it difficult to maintain ice over the last two ice skating seasons. Given the high cost of repair, difficulty to find replacement parts due to age of the existing ice making equipment and the unreliability of the entire refrigeration system to create and maintain an adequate ice sheet, staff finds maintaining the existing system unsustainable. Therefore, installation of a temporary chiller system is proposed to provide reliable service for the upcoming 2023-2024 ice skating season until a programmed long-term replacement is implemented.
Under a tight deadline to find a temporary solution and secure chiller equipment for the 2023-2024 ice skating season, staff, through research and networking with local service providers, found and contacted American Arena, a company based in Minnesota that specializes in ice rinks. American Arena offers full project services from planning, design, and construction of ice rinks throughout the country. They also have technical expertise in the design and assembly of custom chiller equipment.
The procurement of these services complies with Section 31-3(b)(4) of the County Procurement Code as the vendor is a party to Sourcewell Contract 120320-AMR, a cooperative purchasing agency that competitively procured and awarded a service contract to American Arena. In an effort to acquire the best value for the County, a second cost proposal was received utilizing an existing construction on-call contract. However, the second proposal exceeded American Arena’s proposal. Therefore, staff recommends contracting with American Arena.
The services agreement, Attachment A, provides for the necessary labor, materials and equipment for installation of a temporary chiller. The work includes demolition and removal of existing equipment which will benefit and reduce costs for placement of long-term ice making equipment improvements discussed further below. The contract requires completion of the temporary chiller installation and start up by October 27, 2023 to begin making ice for the skating season beginning in mid-November. The contract also contains provisions for remote monitoring of equipment, onsite training and troubleshooting, maintenance and operational support through the end of the ice skating season, i.e. March 2024. The County has the option to amend the agreement, with Council approval, for additional services if required.
Long-Term Improvements
Concurrent with an approximate 25-year service life for ice making equipment, the county programmed funds for equipment replacement in Fiscal Year 2026. However, current equipment failures have accelerated these efforts resulting in re-prioritization and the programming of Major Facilities Maintenance and Capital Improvements Program (CIP) funds as detailed in the 2023-2024 Biennial Budget approved by Council. The budget items are targeted not only to address the above temporary measures, but also replacement of the ice making equipment and the reconstruction of the ice rink floor system as it’s also near the end of its service life. These long-term improvements combined provide an economy of scale to acquire better value and result in less disruption to the facility and its users with the goal of improving overall system reliability.
Since a new chiller system is not an “off-the-shelf” product and the lead time to acquire a new replacement chiller can take up to a year, staff is currently engaged with American Arena to finalize scope, schedule and cost utilizing the same contractual mechanism for long-term replacement of ice making equipment and the floor. Staff anticipates bringing this item to Council for approval in the coming months.
Preliminary estimated costs for long-term improvements are in the range of $1.6M to $1.9M for a new chiller refrigeration system and approximately $1M for floor replacement including all piping and reinforcement.
In 2011, 2017 and again as part of the FY 2024 CIP budget, a shade structure for the ice rink has been contemplated. Council will be updated on this effort at a later time as the project scope and other details are further defined.
Alternatives
Council could choose not to approve the contract. However, any delay may result in the suspension of the 2023-2024 ice skating season.
Fiscal and Staff Impact/Planned Item
Funding in the amount of $1,500,000 for the temporary and long-term ice rink equipment replacement is currently budgeted and available in the Major Facilities Maintenance Fund.
Funding in the amount of $1,500,000 for replacement of the ice rink floor and shade structure are budgeted in the FY 2024 Capital Improvements Program. Additional funds for this effort in the amount of $2,500,000 are also projected in FY 2025.
Attachments
A - AGR 23-955 American Arena
B - Presentation