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Home My WebLink About2014-11-05 PACKET 04.F. REQUEST OF CITY COUNCIL ACTION COUNCIL AGENDA MEETING ITEM # �� DATE 11/5/14 . . PREPARED BY Parks and Recreation Zac Dockter ORIGINATING DEPARTMENT DEPARTMENT HEAD *******��*�**�*************�*****��***,�****�**�� COUNCIL ACTION REQUEST Consider accepting and placing on file the Ice System Evaluation Study for the Cottage Grove Ice Arena. STAFF RECOMMENDATION Accept and place on file the Ice System Evaluation Study for the Cottage Grove Ice Arena. BUDGET IMPLICATION: $0 $0 BUDGETED AMOUNT ACTUAL AMOUNT ADVISORY COMMISSION ACT(ON DATE REVIEWED APPROVED DENIED ❑ PLANNING ❑ ❑ ❑ ❑ PUBLIC SAFETY ❑ ❑ ❑ ❑ PUBLIC WORKS ❑ ❑ ❑ � PARKS AND RECREATION 9/8/14 � � ❑ ❑ HUMAN SERVICES/RIGHTS ❑ ❑ ❑ ❑ ECONOMIC DEV. AUTHORITY ❑ ❑ ❑ ❑ ❑ ❑ ❑ SUPPORTING DOCUMENTS � MEMO/LETTER: ❑ RESOLUTION: ❑ ORDINANCE: ❑ ENGINEERING RECOMMENDATION: ❑ LEGAL RECOMMENDATION: � OTHER: Ice System Evaluation Study for the Cottage Grove Ice Arena ADMINISTRATORS COMMENTS _ ,Y � __ , � � ' ` �l% � � C oministrator Date *��******�***�*****,�*�***�******�****��****�*** H:\Ice Arena\Chiller\Chiller Replacementllce System StudyWction Form-Ice Study Acceptance.doc Cy� Cottage J Grove � pride andP�osperity Meet To: Honorable Mayor and City Council From: Zac Dockter, Parks and Recreation Director CC: Jordan Hirman, Ice Arena Manager Ryan Schroeder, City Administrator Date: October 29, 2014 Subject: Ice Arena Refrigeration Study Introduction City Council authorized an Ice Arena Refrigeration Study by Steven's Engineering to begin planning for capital improvements necessary to manage the effects of the EPA's R22 Freon phase out on the Cottage Grove Ice Arena operations. R22 Freon is the refrigerant used in the arena's direct refrigeration system. Background Expected outcomes of the study were: 1. Analysis of existing ice systems and provide useful life projections 2. Analysis of replacement options 3. Analysis of energy efficiency opportunities 4. Provision of detailed cost estimates for each option including escalating factors 5. Estimated project schedules 6. Provision of professional recommendations to be used for future projects Staff believes the Ice System Evaluation Study provided with this report achieves those desired outcomes. Cottage Grove Ice Arena Refrigeration System History The refrigeration plant that currently operates the north and south rinks was installed during original building construction in 1974. The life expectancy of the system is 35 years. Thus the current refrigeration plant has exceeded its life expectancy by 5 years. The original rink floor piping (from 1974) was replaced in the year 2000 due to corrosion, blockage and leaking issues. Ice rink floor steel piping has a life expectancy of 25 years. The current rink floors have approximately 10 years of remaining life expectancy. No two refrigeration systems are the same. There are many unknowns that will extend or limit the life expectancy of the operating systems. As a best guess, staff believes both the refrigeration plant and floor have approximately 5 years of more of life expectancy remaining given proper and vigilant maintenance. Staff Summary Eight options were presented in the Study for the Cottage Grove Ice Arena's refrigeration system. Those were: Option 1: Do nothing Present Cost = $0 Option 2: Improve existing system to extend life 5 years or more Present Cost = $520,000 Option 3: Convert existing system to indirect system Present Cost = $2,037,000 Option 4: New HFC commercial grade indirect system Present Cost = $2,268,000 Option 5: New HFC industrial grade indirect system Present Cost = $2,668,000 Option 6: New ammonia industrial grade indirect system (same as west rink of CGIA) Present Cost = $2,838,000 Option 7: New CO2 indirect system Present Cost = $2,634,000 Option 8: New CO2 direct system Present Cost = $3,136, 000 The Study summarizes the condition of the existing system as follows, "The existing system has been very well maintained, with timely repairs and improvements performed on the ice system (refrigeration and ice rink floors) and other related systems. There has been an obvious and concerted effort to reduce energy costs. The Study shows that this 3-sheet facility uses the same or less energy than similar 2-sheet facilities." As a result, the Study recommends the continued operations of the existing chiller system for the following reasons. 1. The existing direct system is still the most efficient ice system in the industry (due to the direct flow of refrigerant). 2. The ice rink floors were replaced in the year 2000 and have 10 years of life expectancy remaining. 3. Using the existing system for a while longer will allow newer ice system technology, such as CO2 refrigerant, to develop. This could result in increased efficiency and decreased manufacturing costs from current replacement options. 4. Although not in the report, staff believes maintaining the existing system also gives the City time to plan for the financial implications of such improvements, including the evolution of future grant programs, to support the ice system. However, the Study further suggests that a continued strong maintenance program along with implementation of several improvements to the system would be necessary to extend its life to the point where the costs of R22 Freon and or maintenance/repair become too high to support its operation. The Study lays out over $500,000 in "minimum improvements to the existing system" that should be considered to maintain the current refrigeration plant (see option 2). A team of staff has reviewed those items in detail with both Steven's Engineering and reputable ice rink contractors. Staff believes those costs can be reduced considerably due to work that has already been completed over the past five years. Staff would recommend modifying the Study's list of recommended improvements to that of the projection schedule below for 2015- 2020. Projected Costs to Maintain Current System Until 2020 Study Proposed Costs Staff Proposed Costs Cost 2015 2016 2017 2018 2019 2020 Replace refrigerant relieve valves (3 valves x $1200) $7,200 $3,600 New life safety systems - emergency shutoff for chiller $5,000 $5,000 Calibrate gas monitoring system (staff suggests new unit w/R22 infrared) $1,000 $5,000 System evaluation by ice rink contractor $5,000 R22 Leak repair allowance $20,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 R22 Refrigerant for storage or to top off system (1000 Ibs x $18) $18,000 Replace dryer cores - standard maint item (4 cores x $1200) $4,800 $4,800 Overhaul compressors - standard maint item (2 x $4000) $8,000 $8,000 $4,000 $4,000 $4,000 $4,000 $4,000 Replace dump solenoid valves (1 valves x $2500) SZO,000 Sz,soo Replace vent solenoid valves (4 valves x $2000) $8,000 $4,000 $4,000 Replace monitoring device (temperature/pressures)(just temp probe) $4,000 $1,000 Investigate integrity of vessels and piping systems $4,000 $4,000 Reinsulate pumpers, smaller piping and valves $15,000 $15,000 Paint equipment, piping, supports, etc $2,000 Replace compressors and motors (3 $90,000 $10,000 $10,000 $10,000 tota�) Install new control system $65,000 Replace cooling tower or condensor (achieved life expectancy in 2020) $100,000 $7,000 Repair chiller room roof $20,000 $20,000 Subtotal of Estimated Costs $387,000 $94,900 $23,000 $9,000 $19,000 $9,000 $9,000 15% Contingency $58,050 $14,235 $3,450 $1,350 $2,850 $1,350 $1,350 Project Total $445,050 The City should be aware of the potential risks identified by the Study for maintaining the current refrigeration system. 1. Equipment and replacement parts for the existing system will become more costly as availability decreases. Several parts such as compressors, valves, fittings, exchangers, insulators and electrical systems will no longer be manufactured for this type of system thus requiring purchase of limited supplies or the modification of existing systems. The City may want to consider inventorying parts as they are available at a reasonable cost. 2. As the floor system ages, the likelihood of leaking pipes naturally increases. This potentially increases health risks to employees and facility users. 3. As any system ages, the dependability of the system declines. Therefore, the risk of losing operational time and/or the actual ice sheet(s) increases with each season. 4. The world's supply of R22 Freon continues to diminish. A catastrophic leak of the current system could lose as much as 8,000 pounds of refrigerant. At a current cost of up to $15 per pound, the replacement cost of the refrigerant alone would be $120,000. Those prices will likely escalate as R22 supply declines. Staff must be vigilant in routine maintenance and inspections to minimize exposure to leak risks. However, catastrophic leaks can be uncontrollable so this is a risk that must be considered. In conclusion, staff supports the recommendations of the Study for the following highlighted reasons: 1. The system is currently the most efficient and effective refrigeration system available. 2. Staff is confident in its maintenance program and believes the system can be maintained for several more years if the suggested improvements take place. 3. Delaying replacement allows staff to work with Council to make a financial plan for a complete refrigeration system replacement. 4. Staff expects grant programs to become available in the future that could reduce replacement costs. 5. Staff believes future technologies, such as CO2 as a refrigerant, may become available that could be the most financially and environmentally responsible option for replacement for the Cottage Grove Ice Arena. However, those technologies are not quite "ripe" at this time and need continued growth, study and regulation. Staff Recommendation Accept and place on file the Ice System Evaluation Study for the Cottage Grove Ice Arena.