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HomeMy WebLinkAbout~Master - Waiving City Purchasing Policy for Ames/ISU Ice Arena Compressor Complete Overhaul RESOLUTION NO. 23-589 RESOLUTION WAIVING CITY PURCHASING POLICY FOR THE AMES/ISU ICE ARENA COMPRESSOR COMPLETE OVERHAUL FOR THE CITY OF AMES,IOWA WHEREAS, the Ames/ISU Ice Arena opened in 2001. The ice making system was constructed with two compressors that circulate the refrigerant in order to make and keep ice year- round. Staff, along with Johnson Controls (JC),Urbandale, Iowa, has completed all manufacturer recommended preventative maintenance since opening the facility. One specific maintenance practice that is completed every four years, or 4,500 hours of operation, is a top end overhaul of each compressor. Typically, each compressor receives a top-end overhaul in alternating years, which allows the ice making system to always remain in constant operation with at least one compressor available; and, WHEREAS, in late October, JC started the top end overhaul. While JC was in the process of completing the top end overhaul, JC determined the internal parts of the compressor had worn so much that it was impossible to put the same parts back in the machine and have it operate to original manufacturer specifications. JC notified City staff in late October that they had contacted the compressor manufacturer to determine a solution to get the compressor operational again. Staff were notified on November 6, that in order for the compressor to be operational, it would have to undergo a complete overhaul which includes installing new Original Equipment Manufacturer parts. The total cost to complete the overhaul is $84,065; and, WHEREAS,the compressor manufacturer no longer makes the Ice Arena's specific model or a comparable compressor. The manufacturer offers a larger compressor, but would require a redesigned ice making system which at this time is infeasible. Unfortunately, this means the only option is to undertake a complete overhaul of the existing compressor. The complete overhaul is expected to extend the lifespan of the compressor approximately another 20 years; and, WHEREAS, The Ames/ISU Ice Arena is operated as an Enterprise Fund and maintains an operational fund balance and a capital reserve fund (CRF) balance. The City and ISU annually contribute$40,000 each to the CRF and as of June 30,2023,there is $240,353 available for capital replacements. Since $20,000 for the top-end overhaul is already included in this year's scheduled projects, an additional $64,065 needs to be allocated to accomplish the complete overhaul of the compressor. With this reallocation, the ending balance in the CRF will be $116,042; and, WHEREAS, the compressor that is currently in operation was also installed in 2001 and was not meant to operate by itself for long periods of time. It is important that the compressor be fixed immediately because if the second compressor were to fail, the facility would not be able to make ice. JC is the most capable contractor to complete the work as it has been maintaining the ice making equipment since 2001 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the waiver of City Purchasing Policy and award of contract to Johnson Controls,of Urbandale, Iowa, for the Ames/ISU Ice Arena Compressor Complete Overhaul in the amount of$85,065 is hereby approved. ADOPTED THIS 14" day of November, 2023. Renee kall, City Clerk John A. Haila, Mayor Introduced by: Beatty-Hansen Seconded by: Junck Voting aye: Beatty-Hansen, Corrieri, Gartin, Junck, Rollins Voting nay: None Absent: Betcher Resolution declared adopted and signed by the Mayor this 141"day of November, 2023.