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COUNTY OF SAN MATEO
Inter-Departmental Correspondence
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Department of Public Works
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DATE:
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June 30, 2006
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BOARD MEETING DATE:
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July 18, 2006
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SPECIAL NOTICE/HEARING:
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None
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VOTE REQUIRED:
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Majority
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TO:
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Honorable Board of Supervisors
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FROM:
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Neil R. Cullen, Director of Public Works
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SUBJECT:
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Service and Repair Agreement for the Cogeneration and Absorption Chiller Equipment at the Youth Services Center
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Recommendation
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Adopt a resolution authorizing the President of the Board to execute a four-year agreement with an optional one-year extension, with Carrier Commercial Service (Contractor) that provides for the service and repair of the cogeneration and absorption chiller equipment installed at the Youth Services Center.
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Vision Alignment
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Commitment: Responsive, effective and collaborative government.
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Goal 20: Government decisions are based on careful consideration of future impact rather than temporary relief or immediate gain.
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The proposed agreement will provide for the maintenance of the equipment and allow us to qualify for an “energy” rebate from the California Public Utilities Commission.
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Background
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Previous Board Action
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Adopted Resolution No. 65620 on October 22, 2002, that provided for the construction of the Youth Services Center.
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History
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Heating, air conditioning and cogeneration equipment which includes sixteen (16) micro-turbine cogeneration units and the associated compressors and absorption chillers, were specified as part of the Youth Services Center (YSC), as the turbines meet the Leadership in Energy and Environmental Design (LEED) requirements that were incorporated into the YSC design. The construction of the turbines and the associated compressors and absorption chillers is complete, and operational testing is underway.
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The project qualifies for a one-time incentive of $700,000 from the California Public Utilities Commission program that is administered by PG&E (Self-Generation Incentive Program [Program]). However, at least a fully executed three-year maintenance agreement is necessary in order to qualify and receive the incentive.
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Discussion
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The equipment covered under the proposed agreement was manufactured by UT Power, a subsidiary of Carrier Commercial Service. A one-year parts and labor warranty is furnished with the equipment. However, it is necessary to continue the contract with the manufacturer in order to satisfy PG&E’s requirement for the equivalent of a three-year extended warranty.
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We are recommending a four-year agreement with a one-year extension option, as the manufacturer recommends replacement of the main components of the micro-turbine system after 40,000 hours of operation. Some of the units will likely have 40,000 hours of use by the 5th year. Therefore, the term of the proposed contract with the one-year extension provides for manufacturer support for a complete maintenance life cycle of the systems, and will allow us to accurately assess the reliability and productivity of the equipment.
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We propose to have staff trained on maintaining this equipment during the term of the agreement in order to give us the option of “in house” maintenance in the future.
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An agreement and resolution have been approved as to form by County Counsel and the Contractor has executed the agreement.
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The contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination and equal benefits.
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Fiscal Impact
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The total not to exceed cost of the contract is $500,000 consisting of the following:
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Year 1 Maintenance
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$61,388
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Year 2 Maintenance
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$61,388
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Year 3 Maintenance
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$105,248
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Year 4 Maintenance
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$61,388
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Subtotal
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$289,412
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Optional Year 5 Maintenance
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$64,456
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Subtotal
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$353,868
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Contingencies
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$146,132
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Total
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$500,000
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The increase in year three includes the major maintenance item of replacing the injectors and igniters on the 16 micro-turbines, and the contingency is to cover labor and materials for non-warranty repairs after expiration of the one-year warranty. This also includes the provision for after-hours repairs and annual emissions testing as required by the Bay Area Air Quality Management District. The optional fifth year and the contingency will only be used if additional work is authorized in writing by the County.
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Funding is available in the Capital Project/Major Maintenance appropriation.
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There is no additional impact to the General Fund.
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