HCPS FL Logo Facilities
Action Item
DATE: Tuesday, April 23, 2013
TO: School Board Members
FROM: MaryEllen Elia, Superintendent
SUBJECT / RECOMMENDATIONS

Approve Agreement for Purchase of Chilled Water for Cooling at Velasco Student Services Center

EXECUTIVE SUMMARY

A previously approved District Facilities Five Year Work Program provides for renovation of the heating, ventilating, and air conditioning (HVAC) system at the Velasco Student Services Center.  In lieu of replacement of the existing chillers, District staff considered the purchase of chilled water from Ybor District Cooling, Inc., a private entity currently providing chilled water to Hillsborough Community College and other customers in the vicinity of Velasco.  (This scheme would be similar to that currently used for cooling at ROSSAC and Rampello)

Carastro & Associates, Inc. was selected from the approved Continuing Services Consultants list to provide design services for the project.  As requested by District staff, Carastro & Associates evaluated the alternate schemes (new replacement chillers versus purchased chilled water) in the life cycle cost analysis (LCCA) for the project. The chilled water purchase scheme yielded the lowest life cycle cost. The favorable economics are due in part to the ability of the large central cooling plant operated by Ybor District Cooling to produce chilled water at a significantly lower cost than can be achieved through the smaller plant required for Velasco.  Ybor District Cooling also offers greater reliability by maintaining 100% redundant capacity (twice as many chillers as required to support the load.)

The attached agreement provides for the purchase of chilled water for a period of fifteen years, and includes an option to extend the agreement for an additional ten years.  The agreement establishes a fixed rate per ton-hour of cooling, subject to 2.5% escalation per year. A one-time cost for the piping required for connection is also included. The agreement has been reviewed by the Board attorney.

STRATEGIC OBJECTIVES
• Demonstrate best financial practices • Construct and maintain facilities that create an environment conducive to teaching and learning
FINANCIAL IMPACT (Budgeted:  Yes)

Funds for the one-time connection cost of $113,480 are included in the District Capital Outlay:  Local Millage.  Funds for the estimated annual chilled water cost of $52,300 (as escalated) shall be included in District General Operating Funds, and are offset by reduced utility and maintenance costs.

EVALUATION
SUBMITTED BY: 
Rory Salimbene   Cathy L. Valdes
General Manager of Construction
(813) 272-4112
  Chief Facilities Officer
(813) 272-4004
    A 7.01a
Hillsborough County Public Schools (Florida) * Mtg.#20130423_560 (Board Meeting) * Section A Item# 7.01a