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CITY OF SEWARD, ALASKA
RESOLUTION 2013 -064
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ALLOW CHANGE
ORDER #1 WITH HARMON CONSTRUCTION, INC. FOR THE CIVIL /SITE
WORK AND FOUNDATION CONSTRUCTION AUTHORIZED UNDER
RESOLUTION 2013 -051, TO PERMIT THE INSTALLATION OF VAPOR
BARRIER, TWO -INCH INSULATION AND PEX TUBING INTO THE
CONCRETE SLAB /FOUNDATION, FOR A PRICE INCREASE NOT TO
EXCEED $89,500, AND APPROPRIATING FUNDS
WHEREAS, the City Council approved Resolution 2013 -018 which authorized the City
Manager to enter into a purchase agreement with R &M Steel for the purchase of a steel building kit;
and
WHEREAS, the City Council approved Resolution 2013 -051 which authorized the City
Manager to enter into a construction agreement with Harmon Construction, Inc. for the civil /site
work and construction of the concrete slab /foundation for that building; and
WHEREAS, the City Council approved Resolution 2013 -061 which authorized the City
Manager to enter into a construction agreement with Harmon Construction, Inc. for the erection of
that building, and the design and installation of lighting and heating systems; and
WHEREAS, the system recommended as the most efficient and economical heating system
is an in -floor PEX tubing (cross- linked polyethylene) hot water circulation system; and
WHEREAS, while the system will be initially supplied by an oil -fired boiler, it is adaptable
to a geo- thermal heat pump system at a later date, to further reduce the carbon footprint; and
WHEREAS, Harmon Construction, Inc. has offered a change order in the amount of $89,500
to install the vapor barrier, insulation and PEX tubing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The City Council finds it is in the best interest of the public to employ an in -floor
heating system for the new Electric Department Warehouse.
Section 2. The City Manager is authorized to modify the construction agreement with
Harmon Construction, Inc. for the civil /site work and concrete slab /foundation construction to permit
the installation of the vapor barrier, two -inch insulation and PEX tubing into the concrete
CITY OF SEWARD, ALASKA
RESOLUTION 2013 -064
endi
slab /foundation to support in -floor heating, for a price increase not to exceed $89,500 from account
no. 505 -5052 -5930.
Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 12
day of August, 2013.
THE CITY OF SE WARD, ALASKA
David Seaward, Mayor
AYES: Keil, Seaward
NOES: Valdatta, Bardarson, Shafer, Casagranda, Terry
ABSENT: None
ABSTAIN: None
ATTEST:
FAI
Brenda J. Ballou
Acting City Clerk
(City Seal)
Agenda Statement
r 40 F st
Meeting Date: August 12, 2013 ; r a
f -
. - 7
To: City Council 4 4irti" °'
Through: Jim Hunt, City Manager
From: John Foutz, Electric Department Manager
Agenda Item: To modify the construction agreement with Harmon Construction Inc. to
permit the installation of vapor barrier, 2" insulation and PEX tubing into
the foundation, for a price increase not to exceed $89,500.
BACKGROUND & JUSTIFICATION:
On March 11, 2013, the Seward City Council approved Resolution 2013 -018 which authorized
the City Manager to enter into a purchase agreement with R &M for the purchase of a steel
building kit.
On June 24, 2013, the Seward City Council approved Resolution 2013 -051 which authorized the
City Manager to enter into a construction agreement with Harmon Construction Inc for the
Civil /Site work and construction of the concrete foundation for that building
On July 22, 2013, the Seward City Council approved Resolution 2013 -061 which authorized the
City Manager to enter into a construction agreement with Harmon Construction Inc for the
erection of that building and the design and installation of lighting and heating systems. Harmon
Construction Inc has recommended that the most efficient and, in the long run, most economical
system is in -floor hot water heat, provided (at least initially) by an oil fired hot water boiler. This
is the same system used to such good effect in the New Library and in homes all over town.
One of the challenges in heating a warehouse space is the frequency with which extremely large
overhead doors are opened, allowing the hot air to escape to the outside. With a system of
conventional overhead oil fired hot air heaters, the warm air has to be replaced each time the
doors are opened. As a result the heaters cycle frequently and consume large quantities of fuel.
With in -floor heating, the warmth of the floor is persistent, regardless of the condition of the air
above it. As a result, the air, cooled by the opening of the large overhead doors, is gradually re-
warmed to an acceptable temperature without the need to continually cycle the heating elements.
Meanwhile, the occupants continue to enjoy the same warmth throughout. It is believed that fuel
costs for the in -floor heating system will be drastically reduced as compared to conventional
overhead oil fired hot air heaters. PAC West Sales Inc estimates savings for oil fired boilers to be
86 -90% while savings for gas fired boilers may be up to 96% over conventional oil or gas fired
heaters.
While the initial cost of this system is somewhat higher, it is believed that the greater efficiency
of the system will provide a payback interval of 8 -10 years. That interval could be shortened by
installing a geo- thermal heat pump as the hot water source, even further reducing fuel costs,
provided a grant, perhaps from an environmental or conservation organization could be acquired
for the purchase cost of the heat pump.
Installation of a vapor barrier and insulation are required regardless of whether the PEX tubing is
installed. Since the foundation engineer did not include those items, they were not included in
Harmon Construction's proposal. The cost of those items, without the PEX tubing is estimated at
$18- 20,000. Thus the cost of the in -floor heating system is a reasonable and justifiable expense.
INTENT: To authorize the City Manager to modify the construction agreement with Harmon
Construction Inc for the civil /site work and foundation construction to permit the installation of
vapor barrier, 2" insulation and PEX tubing into the foundation, for a price increase not to exceed
$89,500, from account 505 -5052 -5930.
CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan (1.3, 3.7.3.1, 3.7.3.2): X
2. Strategic Plan (document source here): X
3. Other (list): X
FISCAL NOTE: This contract amendment of $89,500 brings the total contract price to $582,
690 which will be charged to the Alaska Energy Authority Grant #7910011.
Approved by Finance Department: / ��•
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
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Authorize the City Manager to modify the construction agreement with Harmon Construction Inc
for the civil /site work and foundation construction to permit the installation of vapor barrier, 2"
insulation and PEX tubing into the foundation, for a price increase not to exceed $89,500, from
account 505 -5052 -5930.