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09.d PW - Water Heaters Report Staff Report Date of Meeting: 12/21/2021 For: Honorable Mayor and Council From: Charles Fischer Subject: Water Heater Replacement Background: The water heaters in the Community Center which supply hot water to the bathrooms and kitchen are aging and not efficient. The water heater which serves the kitchen has required expensive service repairing or replacing the exhaust gas baffle and has been replaced more than once in recent years. One water heater dates back to 1988 and the other is original to the expansion of the hall and kitchen. The Community Center Improvement fund has a remaining balance to support the replacement of the water heaters. Public Works contacted multiple vendors for quotes. Each were given a date and ample time to submit a quote but only one was received. Public Works suggests downsizing the bathroom water heater from 75 gallons to 40 gallons. Downsizing will lower cost of installation, fuel use, and maintenance. The water heater which serves the kitchen will be replaced with an on-demand water heater which will also save on fuel and operating cost. Issue: Should the approval for water heater replacement happen although only one vendor has supplied a quote. Proposal Detail: Public Works recommends replacing each water heater: 40-gallon water heater cost of $2,200.00 and the on-demand water heater at a cost of $4,200.00. Although only one quote was received these prices are competitive compared to market prices. Fiscal Impact: Originally $10,000 was budgeted for Community Cen ter upgrades this year. Other upgrades have been made out of this budget and a balance as of the end of November was $8,500.00. Options: Option 1: Dad’s Plumbing and Heating total cost for two water heaters of $6,400.00. Option 2: Do not approve the installation of the water heaters. Recommendation: Option 1 Dad’s Plumbing and Heating at a cost of $6,400.00 which was the only quote supplied.