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08-13-2019 Work Session Complete AgendaCITY COUNCIL WORK SESSION RICHFIELD MUNICIPAL CENTER, BARTHOLOMEW ROOM AUGUST 13, 2019 6:00 PM Call to order Richfield Ice Arena Refrigeration Project Information and Staff Recommendations Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. AGENDA SECTION: Work Session Items AGENDA ITEM # STAFF REPORT NO. 6 WORK SESSION 8/13/2019 REPORT PREPARED BY: Amy Markle, Recreation Services Director DEPARTMENT DIRECTOR REVIEW: Amy Markle 8/6/2019 OTHER DEPARTMENT REVIEW: N/A CITYMANAGER REVIEW: Katie Rodriguez, City Manager 8/7/2019 ITEM FOR WORK SESSION: Richfield Ice Arena Refrigeration Project Information and Staff Recommendations EXECUTIVE SUMMARY: The City Council work session will focus on the Richfield Ice Arena Refrigeration Project including: • The history of the facility and it's connection to the community. • An understanding of the community groups that utilize the facility and the impacts this project may potentially have on them. • Project need and associated costs. • Project timeline and ne)d steps. • Staff recommendations to consider for an October 22 Council vote to decide what option to pursue with the project. Staff's recommendations are: • Complete the refrigeration project in 2020, signing quotes in November 2019 for the work to be done and to secure pricing. • Plan community engagement efforts in August, September, and early October. • Bring engagement responses back to the council for a final vote on the project on October 22. • Fund both sheets of ice and building improvements that would allow for year-round ice and/or dry floor activities. • Fund the project with a combination of sources including: golf course sale monies, budgeted capital monies, grants, and contributions from partner organizations. • No longer use harmful R-22 refrigerant. • See significant annual energy savings. DIRECTION NEEDED: Please review the attachments and either prepare comments/questions for discussion at the work session or send comments/questions to Amy Markle, Recreation Services Director, prior to the meeting by email at amarkle@richfieldmn.gov and they will be addressed at the work session. BACKGROUND INFORMATION: A. HISTORICAL CONTEXT The Richfield Ice Arena was built in 1971. A second sheet of ice was added in 1999. The current equipment that both sheets of ice run-on are original. Both ice rinks have direct R-22 refrigeration system. R-22 is a chemical that is no longer being produced after the end of 2019. The price of e)asting R-22 is anticipated to increase sharply, and become obsolete over time. This problem is not unique to the Richfield Ice Arena, almost every arena in the state is facing the same issue. B. POLICIES (resolutions, ordinances, regulations, statutes, etch The Environmental Protection Agency has mandated that all production of ozone -depleting HCFC-22 (R- 22), stop December 31, 2019. Please see attachment. C. CRITICAL TIMING ISSUES: The following issues create a sense of urgency for the project: • The cost of replacing one ice sheet vs. two: the second sheet adds appro)amately $700,000 varying with annual construction labor wages. • The cost of total project materials escalates every year by a minimum of 4%. • The elimination of R-22 production will put the cost at the demand of the market. • Every year we are losing/leaking R-22 and have to add roughly 500 Ibs to keep our system operating efficiently. • We are already seeing mechanical failures of pieces of equipment. • Our prime location we continue to be in high demand for our ice time and facility. • Timing of this project will be competitively bid by many arena contractors. D. FINANCIAL IMPACT: The current quote we have for the project costs are estimated at: • 2020 construction- $3.4M + $400,000 building improvement costs (HVAC system, roof, and indoor turf) • 2021 construction- $3.5M + improvement costs • 2022 construction- $3.6M + improvement costs • The project can be funded in a variety of ways including: capital funds that were already budgeted ($430,000), golf course sale monies, grants, and organizational partnerships E. LEGAL CONSIDERATION: N/A ALTERNATIVE(S): The following are alternatives to staff's recommendations: • Replace one refrigeration plant now and defer the second ice sheet to a future time. • We run on the current system and incur financial, community, and environmental risks. PRINCIPAL PARTIES EXPECTED AT MEETING: ATTACHMENTS: Description Type ❑ Presentation Backup Material ❑ EPA Ice Rinks and R-22 Phaseout Information Cover Memo i m 2!% a 0 ■O � AMA T) ■� m L m 1 >1 Lm a� O M2 s U (n '>- VJ i co W O > C p Co -- O � ryo U N O I—Z � Z N N � a) O p }, �j U O ._ ._ O O p O _Ile N _Ile Ca N 0 as 0 s V no r T r a� 06 U > • — C6 U U)Mj co •� N O co _0 _0 U) U ' c6 (1) O CM co CY) O U) N Z N � 70 '� 0 C co> 4 L �sic co 0-+ Q C6 00 • L L co O Q O Q L O CO L y � .� N cn _' � O N O C ■�CO cn LO Q O O a) � MISS!'U O N (� Q E O to O U) U O U O 4-- (a X V)a 0 N O N >1 — coL O L E •� mc 0 ._ 19 u 0 J U) '0 0 LL 0 c� a� CO U) 0 L- U) 0 co 0 N 4) 0 c- c ca 0 U m �' O 0 >, O i.L U 0 (D 00 4) mc 4) mc O 13 3 0 x cu W c� U) U co n O O m C cu 0) U m U n L Co ,- O O O N >' E O 0) " C: 4- a) U) O O 0 \V O 4-0 � � N O _0 U m _� O ) -� E O N U) N C: 4-0 O U N O70 O O c� cn � m (� C E C 0 Q O O 4-1 OU U O E O .S O U O 0O E 0) _O L 0 UJ O `7 M co cm cm O E N OC'q 0 ■ . ) (1) 4-j O Q v N 'Q �, •� co O O W O to 0-N CN y cn o o a) O H -c O o co N (1) 70 _ 'Nr' O /O 'A U Ll ca •� L O O L oo = C ti m N a� •T E N O U) C — � L '- a ��_ o .� O O O 4 7 rrr v U)0 _0 M N E .- jr O O cn U E 9 �e E �--' En 0 (D O N O i (D Ca ■� 0 N O � N N ii■ N N N CL U O � a) -0 � _ O E o O U � ■� � o E -� N > 0 O � +� O o 5 O QL U >. - mc LD -a O O -� Ca L .O }, O QCL L U U O O � N �� o ry y (a C: U C O =Olin y o U U L� p O O L O -C p -C cn C co CoL L � ■ p >' `�O a=-+ cn " E � N 0 U) -1--i C: CL O � —j -0 � Ca L L �_ O •i � �L C6 L C: =3 O CU cn ■ O �� �' mcm ° �cn p C'7 � •:3 � U � p � � � co (a � p CU CU CU to m — — co O •� CU >0 O � Ca O >O >p >p O > U > > (n (n 3 9 >1 C) = d �a >1 M o O v � L Ls d � o s CD � � M � =CD EiT IM o • O E O O >1 Ir- N O O -0 OIr- p O � O cn _0 a) .� m c: E m O � U O .0 cn O -C: U O N E c: c6 m N C: ca O U O OL. O.a Ll 0 AMA (1) 0 (a) m m �o L am C: O O � O � O L- O -0 O� O N O N cn 4-0 O ^E W 0 i� N C O V) CM 4-0 O U O 4-j m E W ^E W 0 v co cn O U O C� E a) ,r-- CV O O N N E C O Q -0 4 E O -- U cm Ca ' U cn O O N N U C: 4-5 O — Co N _ > _ O-0 ._ 0 Co _0M U) O L1. I O E = I }i O O O CU (6 E p CD ■ O-0 0 � E-0 L m •� � a E >1 _ E N Cm Q 0 O Ca OL '� L Co }' m O L 0 (� O U > CU ' > CU Q pCo _0 O 4� U) U) --i O co Q N L O co co = N m (� U2.0 •C: � � O O U cn� Co Q 0) c N L o � E • — L N N • U) O }, C6 C) N - 42 O Q •C: N O U� O E 'U •C: Q O CU -0 CU Co Co Co co Q co OO o O :3 -I.- p -I.- CU � i Q Co p 0 p > CU U(/)- U w a U fmp A — U � •— O O � to � 0 O .— CCL N � � � � O N � ,f � E 4� o }' °0 o �■■r L. 0 _QU cn CO O CDL 0 }' O O 00� U� AW 4 � _0ca 0 o X C:(1) Co c Co c -Ie E �w a� ° Z O CDO O° �O W 4-1 E p > SC: : ,� � ° o (n 4-1 � O � U O O 0 E •U 42 0 .— .— c p r. -0 O m-F p U —j 00 p 0 U Ocn.L O N FL O E E 4- Co c S (/) 0 O a.., c�}) �N■A' c a-�+ O u " ` . C6 • - •• •- .- � V cu (D C>6 � L N •L E bn Ca .� w y— �O aA v •A •- O O tea) caQ) E O O O _O C6 Q4- O (3) Q) O '�= U =3 L L > Q -0 .Ln a) = _ = a--+ 4� 3: vi Ln O n E • 4-j J L ED 0 9 Om a O m O • 0 0 LL y-- O U) O 4-1 O C� U O co U) co O 4-1 a� co O N 0!091- . P& a) U) U) cm O E co C� N 0 co O O O O 42 cu 0- O E O U ca 0 Mi_ O U N C: .V O _0 U 0-0 O > M Co O O O `— O O O o0 O�LO O � O 0 4- O - E � -cn cn CO U N o 0 d II R R vpw$w vp 4 VP 91 0 0670067 .I -1 J J J J J 6767670000 0 J..1 1 1 1 1 1 1 06700 0 0000 1 1 1 1 1 1 1 1 1 0 ¢747 1 11�WW I I I I I I I I I Fkx� C !d Y Y 1 IJ 7��,1,�L LF�IrO C �F Nlo,gin1Oh mff,1�1111* Ill Ill rIll r NNN I I r I � iCpe1 y}! N A TZIN .N i N A 4 R ; � 2 �7� 1.1 What Is the HCFC Phaseout? Under the U.S. Clean Air Act and the Montreal Protocol on Substances that Deplete the Ozone Layer, the United States is phasing out the production and import of hydrochlorofluorocarbons (HCFCs) in order to protect the stratospheric ozone layer. By phasing out the production of ozone -depleting substances (ODS) like HCFCs, we are reducing the risk of skin cancer caused by exposure to UV radiation. In addition, many of these ozone -depleting substances, as well as their substitutes, are greenhouse gases that contribute to climate change. No Immediate Change Is Required HCFC-22 is used as a refrigerant in many applications, including ice rinks. Starting on January 1, 2020, U.S. production and import of HCFC-22 will end. This does not mean that use of HCFC-22 must stop at that time. Since a significant inventory of virgin HCFC-22 exists, and recovered and reclaimed material will be available, the U.S. Environmental Protection Agency (EPA) expects use of HCFC-22 to continue well into the future. Planning for the Future Is Important Even though there is no immediate need for change, supply of HCFC-22 will decline over the next few years, and prices may rise. For existing HCFC-22 systems, this makes tightening leaks and performing preventive maintenance even more important to keep refrigerant emissions down and reduce the need to purchase additional HCFC-22. When the time does come to replace or retrofit an existing system, there are many alternatives available that are safer for the environment. EPA has listed several examples of alternatives in the table on the next page. What Alternatives Can Be Used Instead of HCFC-22? Many alternatives that are safer for the environment than HCFC-22 are available for use both in new rinks and in existing systems that require retrofit. See the table on the next page for a list of some acceptable non -ozone - depleting alternatives under EPA's Significant New Alternatives Policy (SNAP) Program. Some of these alternatives are listed for use in retrofitted HCFC-22 systems, and others are only listed for new ice rink refrigeration systems. A full list of acceptable alternatives under SNAP is available at www.epa.gov/ ozone/snap/refrig erants/lists/icerinks. html. Acceptable Non -Ozone -Depleting Alternatives to HCFC-22 Under EPA's SNAP Program Ammonia 0 No X THR-03 918 No X R-134a 1,430 No X X RS-24 (2002 formulation) 1,505 No X X R-426A 1,508 No X X R-407C 1,774 No X X R-407F 1,825 No X X R-442A 1,888 No X R-410A 2,088 No X R-407A 2,107 No X X GWP = Global Warming Potential. GWP is a measure of how much a given mass of greenhouse gas is estimated to contribute to global warming relative to the same mass of carbon dioxide. When considering an alternative for retrofitting a system, be sure to follow the manufacturer's suggested handling and installation guidelines and to consider possible effects on the system's energy consumption. Are There Other Refrigerant Regulations Affecting Ice Rinks? Ice rinks are subject to refrigerant management regulations under section 608 of the Clean Air Act, specifically the requirement to keep leak rates below 15% for comfort cooling appliances and below 35% for refrigeration equipment. In addition, it is illegal to knowingly vent refrigerant —both ozone -depleting refrigerants and the alternatives' —during servicing, maintaining or disposing of a refrigeration or air conditioning system. For Further Information • Phaseout of Ozone -Depleting Substances: www.epa.gov/ozone/title6/phaseout • Leak Repair Requirements for HCFC-22 Systems: www.epa.gov/ozone/title6/608/leak.html • Leak Prevention and Retrofit Guidelines: www2.epa.gov/greenchill/reports-guidelines-and-tools Other EPA Resources for Ice Rink Managers • Indoor Air Quality and Ice Rinks: www.epa.gov/iaq/icearenas.html • ENERGY STAR for Buildings and Plants: www.energystar.gov/buildings FOR MORE INFORMATION Visit www.epa.gov/ozone/title6/phaseout/classtwo.htm or contact David Donaldson at (202) 343-9086 or donaldson.david@epa.gov. 'Several alternatives have been exempted from the venting prohibition. Examples include ammonia in commercial or industrial process refrigeration or in absorption units, and carbon dioxide, nitrogen or water in any application. A complete list is available in the U.S. Code of Federal Regulations at http://go.usa.gov/kAhO. Office of Air and Radiation (6205J) ow Printed on 100% recycled/recyclable paper with a minimum EPA-430-F-14-018 101 50% post -consumer waste using vegetable -based inks. September 2014