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Memorandum <br /> <br /> <br />Date: January 19, 2024 <br /> <br />To: Honorable Mayor and City Council Members <br /> <br />From: Mark Statz, PE Î City Administrator/Engineer <br />Paul Palzer Î Public Works Director <br /> <br />Subject: Public Works Building Boiler Replacement <br /> <br />The boiler which provides the primary heat source for the equipment bay at the public <br />works building has developed a significant leak in the heat exchanger that is not <br />repairable at a reasonable price. Fortunately, this area has a back-up heating system <br />which is keeping it heated while the boiler is down. Staff has solicited quotes for new <br />boilers to replace the current one. There are several options, ranging from replacing it <br />with a high efficiency unit to installing the same model as we had before. <br /> <br />The current boiler operates at about 82% efficiency. It could be replaced with a high <br />efficiency model (97%). There would be energy savings and a rebate available from <br />CenterPoint Energy (see Option 1). Alternatively, the boiler could be replaced with a <br />similar model at around that same performance (Option 2, below). Finally, Option 3 <br />involves purchasing the exact same model as we currently have, new in the original crate, <br />with venting, for $3,450.00 or best offer on eBay. We have researched the seller and <br />verified they are a trusted seller and are capable of loading it onto a truck. It would need <br />to be picked up from Pine Bluffs, Wyoming. So, we have 3 options: <br /> <br />Up-Front Costs and Options <br />1.) Purchase and install a new 97% efficient boiler installed for $15,945. This <br />boiler would be eligible for a rebate of around $1,500 from CenterPoint Energy, making <br />the net cost around $14,445. <br /> <br />2.) Purchase and install a new 80+% boiler from with 2 new circulation pumps for <br />$11,650. No rebates would apply to this model. <br /> <br />3.) Purchase the eBay 82% boiler, send an employee to pick it up and have it <br />installed by a contractor. The installation estimate is $1,600. Cost for fuel, hotels and <br />food to pick up the boiler on 3 day trip would be $650-700. Alternatively, we have <br />estimates for shipping for $1,500. Total cost if purchased at the listed price, using our <br /> <br />