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HomeMy WebLinkAboutIX-03 Award Contract - Energy Savings Agreement with Apex Facility Solutions, LLC City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Chris Jenkins, Parks & Recreation Director Date: June 26, 2023 Item: Guaranteed Energy Savings Agreement with Apex Facility Solutions, LLC Council Action Requested: Approve Guaranteed Energy Savings Agreement with Apex Facility Solutions, LLC for the Refrigeration Plant Replacement, West Rink Roof Replacement, and Solar System Installation projects at the Hastings Civic Arena. Background Information: Both of these projects have been identified as needed facility upgrades, and Council has provided their commitment to completing both of these projects in 2024. The refrigeration plant replacement requires up front design and engineering services to be completed, and the plants motor control center also needs to be ordered well in advance of the project due to long lead times for specialty equipment. Minnesota Statute 471.345 subd. 13 allows the City to enter into a Guaranteed Energy Savings Agreement such as what is proposed. Using this statute does require the City to publish our intent to enter into this agreement, which was completed in the June 22, 2023 edition of the Hastings Journal. This agreement must also guarantee energy savings over the 20-year life of the agreement, which it does. Entering this agreement with Apex allows them to act as our general contractor, solicit quotes from pre-qualified contractors for each individual component of the project, which city staff will review and approve as appropriate, and allows each of the major components of the project to be added by amendment. Once the design and engineering is completed, the first amendment will be adding the purchase of the motor control center. Future amendments will add the west rink roof and solar system. IX-03 Financial Impact: Refrigeration design and engineering costs are not to exceed $217,391.00. This expense was previously authorized by City Council at their May 15th, 2023 regular meeting. Once the design and engineering are completed, a not to exceed price for the motor control center will be firmed up, and if in line with estimates, can be ordered by amending this agreement. Advisory Commission Discussion: N/A Council Committee Discussion: Attachments: ▪ Apex Facility Solutions, LLC agreement. IX-03 I X - 0 3 I X - 0 3 I X - 0 3 I X - 0 3 I X - 0 3 I X - 0 3 I X - 0 3 I X - 0 3 I X - 0 3 I X - 0 3 I X - 0 3 I X - 0 3 I X - 0 3 I X - 0 3 I X - 0 3