Opening Request for Qualifications - SB Pinhook WTP Guaranteed Savings Contract - Reynolds Construction

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GUARANTEE MANAGEMENT CITY OF SOUTH BEND: PINHOOK WTP IMPROVEMENTS PROJECT GUARANTEED SAVINGS CONTRACT OPERATIONS & MAINTENANCE ESTIMATE APPROACH E. Note how an Operations & Maintenance estimate will be prepared and applied to the process. 20 YEAR OM&R SAVINGS - SAMPLE CALCULATIONS Upon determination of the final scope of work CURRENT REVISED the Reynolds Construction team will assemble SYSTEMSYSTEM Maintenance Labor$ 7,800$ 6,500 the O&M manuals for the City of South Bend Equipment Repair and Replacement Costs$ 9,389$ 6,609 Water Treatment Plant personnel. These Total Est. Annual OM&R Costs$ 17,189$ 13,109 Total 20-Year OM&R Savings$ 81,600 manuals will contain the manufacturer’s Maintenance Labor Labor Rate $ 25.00 per hour CURRENT REVISED recommendations for operating and PROCESSPROCESS maintenance practices for the equipment Weekly Maintenance Labor65hrs/week Annual Maintenance Labor312260hrs/year installed as a part of the project. Reynolds will Annual Labor Cost $ 7,800 $ 6,500 model the labor and material costs prior to and EXISTING SYSTEM after the system has been optimized with more Equipment Repair and Replacement Costs ItemInterval (Yrs)Material CostQuantityAnnual efficient equipment and/or processes. A sample Aeration Rotors Gear Box 20$ 14,0001$ 700 20-year OM&R savings calculation would be as Aeration Rotor Bearings Replace20$ 1,4002$ 140 Grease Cartridges1$ 9601$ 960 follows: Gear Box Oil1$ 6001$ 600 Clarfier Drive Oil1$ 5001$ 500 Addlt. RAS Pump/Screen Maint.1$ 1,0001$ 1,000 Mixer Motor Grease1$ 42$ 8 FUTURE CAPITAL SAVINGS Blower Oil Change2$ 453$ 68 Blower Air Filter1$ 1703$ 510 ESTIMATE APPROACH Blower Belt2$ 803$ 120 Decanter Actuator5$ 1,2002$ 480 F. Note how a Future Capital DO Sensor Head2$ 2242$ 224 Sludge Pump Repair Kit5$ 4512$ 180 Expenditure Savings estimate will be Diffused Aeration Membranes5$ 32600$ 3,840 prepared and applied to the process. Controller Relays1$ 501$ 50 Controller Batteries3$ 261$ 9 $ 9,389 IC 36-1-12.5-3.5, which requires documentation MODIFIED SYSTEM of related capital expenditures by “industry Equipment Repair and Replacement Costs engineering standards.” Indiana statutes ItemInterval (Yrs)Material CostQuantityAnnual Aeration Rotors Gear Box 20$ 14,0001$ 700 identify five methodologies that Reynolds may Aeration Rotor Bearings Replace20$ 1,4002$ 140 use to document related capital expenditures. Grease Cartridges1$ 9601$ 960 Gear Box Oil1$ 6001$ 600 They are, pursuant to IC 36-1-12.5-2.5: (1) Clarfier Drive Oil1$ 5001$ 500 Addlt. RAS Pump/Screen Maint.1$ 1,0001$ 1,000 Lifecycle costing; (2) The R. S. Means Mixer Motor Grease1$ 42$ 8 estimating method developed by the R. S. Blower Oil Change2$ 453$ 68 Blower Air Filter1$ 1701$ 170 Means Company; (3) Historical data; (4) Blower Belt2$ 802$ 80 Manufacturer's data; and (5) American Society Decanter Actuator5$ 1,2000$ 0 DO Sensor Head2$ 2242$ 224 of Heating, Refrigeration, and Air Conditioning Sludge Pump Repair Kit5$ 4512$ 180 Diffused Aeration Membranes5$ 32300$ 1,920 Engineers (ASHRAE) standards. And so, in Controller Relays1$ 501$ 50 order to properly claim capital costs avoided, Controller Batteries3$ 261$ 9 $ 6,609 Reynolds will utilize a proscribed methodology or methodologies to document and justify the amounts associated with such costs. In the case of capital costs avoided, we are generally comparing the future value of a projected cost with the current, expected costs associated with performing work required to be performed in order to implement a project. Thus, lifecycle costing will help establish assumptions relating to whether and when an expense will be incurred during the guarantee term; and some or all of the other four methods – historical data, R.S. Means, manufacturer’s data, and ASHRAE standards might be used to project future costs associated with the expected expense. As with all the savings categories, Reynolds will prepare a report that details the savings this project will provide. This data will be based on the reporting requirements within IC 36-1-12.5. The report will detail the method of calculation and the amount of the savings generated and how each item will be reconciled for review and comment before a contract is approved. The creation of this plan is a process that is collaborative, transparent, and will meet all Indiana codes. Page | 53