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Request-ImOn Arena Used Generator Equipment PurchaseCity of Dubuque City Council .de]Z[+9=1zkikI=1Ly 6RVA11.1 Copyrighted October 6, 2025 ITEM TITLE: Request-ImOn Arena Used Generator Equipment Purchase SUMMARY: City Manager recommending City Council approval to purchase a used 1.5 megawatt (MW) generator for the ImOn Arena, disconnection, moving, and reinstallation of the generator for a total of $225,000. SUGGUESTED Receive and File; Approve DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. Staff Memo Page 718 of 1264 THE CITY DUOF B TEE Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Request-ImOn Arena Used Generator Equipment Purchase DATE: October 2, 2025 Dubuque All -America City 'I I' �N 2007.2012.2013 2017*2019 Parks and Recreation Director Matthew Kalcevich is recommending City Council approval to purchase a used 1.5 megawatt (MW) generator for the ImOn Arena, disconnection, moving, and reinstallation of the generator for a total of $225,000. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Matthew Kalcevich, Parks and Recreation Director Marie Ware, Acting Project and Facilities Manager Bob Schiesl, Assistant City Engineer Gus Psihoyos, City Engineer Jared Charland, Project and Facilities Manager Jenny Larson, Chief Financial Officer Laura Bendorf, Budget Manager Tony Breitbach, Purchasing/Risk Manager Anthony Williams, President and CEO Q Casino and Resort Page 719 of 1264 THE CITY OF DUB E Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Matthew K. Kalcevich, Parks and Recreation Director SUBJECT: Request-ImOn Arena Used Generator Equipment Purchase DATE: October 1, 2025 INTRODUCTION Dubuque MI-Amedea City tllll®r 2007-2012.2013 2017*2019 The purpose of this memo is to request funding from the FY 26 Budget Amendment #1 for the purchase of a used 1.5 megawatt (MW) generator for ImOn Arena, disconnection, moving, and reinstallation. BACKGROUND The City Council in the FY23 budget approved funding in the amount of $4,600,000 for settling remediation, dehumidification and air conditioning improvements, and a generator for the ice arena. The first project to be completed was the settlement remediation project. The dehumidification project is currently ongoing at this time. The City was initially planning to include and develop a larger scale project for the design and installation of a new dehumidification system, a new air conditioning HVAC and emergency generator system. However, due to higher cost projections that exceeded available budgeted funding, the scope of improvements was reduced. As part of the initial feasibility study, the City's consultant evaluated the addition of new air conditioning equipment to provide conditioned air for the arena to support dry floor events during summer months. To support the dehumidification system, the recommendation was to add four (4) 50-ton air conditioning roof top units. The full arena air conditioning project was estimated at $3,900,000 The air conditioning project was based upon discussions about the potential to host dry floor events in the arena in the off season (mostly summer) to increase financial viability of the arena and activities of the island. As part of the feasibility study, the City's consultant also evaluated the energy loads of the ice arena facility to determine capacity requirements for an emergency generator system. Based on the operations of the ice arena, Nelson-Rudie recommended the following two (2) generator system options for consideration. 1 Page 720 of 1264 Options Cost Estimate Full Building Generator (1 Megawatt) $ 760,000 Critical Systems ONLY Generator (500 KW) $ 549,000 Based on updated cost estimates and current available funding for the Ice Arena improvements, there was insufficient funding available to add the air conditioning HVAC improvements or the emergency generator system as part of the original contemplated dehumidification project. Staff prioritized improvements to the arena include only the dehumidification system as a Phase 1 project and further proposed the air conditioning HVAC and emergency generator system could be budgeted in a future fiscal year or include with a future potential 2nd ice sheet. The City received bids in February 2025 for the Phase 1 - Ice Arena Dehumidification System Upgrade Project. Giese Sheet Metal Co, Inc. was awarded the improvement contract in the amount of $308,950.00. The bid award cost for the ImOn Ice Arena Dehumidification System Upgrade Project from project number is 2849900004 with a total project cost of $521,750.00 which included construction (the contract award of $308,950), contingency, consultant services for design and construction as well as city staff services. A change order was approved to strengthen the roof to be ready for the installation of AC rooftop units in the future. This change order was to limit disruptions to the lounge and Saints office areas once versus having another major disruption potentially in the future. The change order addition was in the amount of $110,000. The entire lower roof is being reconstructed and reinforced to support the new dehumidification unit and prepare the roof for the future installation of AC rooftop units, while eliminating the future costs to temporarily remove and reinstall the dehumidification unit. Due to the successful financial operations the last two seasons that now includes extended ice seasons, more tournaments, more ice rentals, the addition of University of Dubuque usage, and more, Marie Ware, Acting Project and Facilities Manager, felt it was important to have a discussion with the DRA/Schmitt Island Development (SID) representatives and Arena staff regarding the potential need for AC now that use of the ice has increased so much. Additionally, they have experienced the costs related to taking the ice out and putting it back in, restriping/painting the ice, and load -in and load - out of non -ice events. Brian Rakestraw, Interim CEO; Lance Carnahan, VP Casino Operations (who oversees the Arena), Rob Kormann, Director of Facilities, (oversees all the Q facilities and arena maintenance) and Mark Plantery, ImOn Arena General Manager were consulted regarding the need for AC as well as other competing needs for the Arena. They shared the following information. Each time the ice is taken out and needs put back in there is a cost of approximately $20,000. The cost of covering the ice also comes with the human capital cost as well as personnel and equipment costs to recondition the ice after it is covered. Depending 0 Page 721 of 1264 upon the event, the safety glass around the area needs to be removed, which comes with a human capital cost as well. Any event would need to cover these costs, which means it must be a highly profitable event. The Arena was also not built for easy load in and load out of events. The load in door is not lined up with the opening that goes to the ice floor which does not allow easy load to in/load out of event equipment. Does this mean that AC would never be needed? No, it does not. If we look ahead to the potential of a second sheet of ice and a heavier load of ice events to be used throughout twelve months in the arena, the need will rise likely again. DISCUSSION The City was approached with an opportunity to consider the purchase of a used 1.5 megawatt (MW) generator. The used generator is at a Dubuque facility where the building is changing hands and the future use of the building has no need for the generator. The generator is a size that would meet the needs of the current ice arena and have extra capacity if a second sheet of ice if added. As outlined in the Background section of this memo, a 1.0 MW generator could run the entire building and a 50 KW generator could run critical systems of the arena. The used generator is being offered at a price of $125,000. The prices above were provided by consultants two years ago ($550,000 for a new generator to run critical systems and $760,000 for a new generator to run the entire building). City staff are working through the due diligence process used for considering the purchase of used equipment. This includes but is not limited to having a third party evaluate the used generator condition, hours of use, service records, pricing of similar used equipment on the market, and more. BUDGET IMPACT Purchase of used generator $125,000 Disconnect, move, reinstall* $100,000 TOTAL $225,000 *This includes slab and foundation, electrical system modifications at arena, screening of generator. ACTION REQUESTED I respectfully request $225,000 in funding from the FY 26 Budget Amendment #1 for the purchase, disconnection, and reinstallation of a used generator. Prepared by Marie Ware, Acting Project and Facilities Manager 43 Page 722 of 1264 cc: Bob Schiesl, Assistant City Engineer Gus Psihoyos, City Engineer Jared Charland, Project and Facilities Manager Jenny Larson, Chief Financial Officer Laura Bendorf, Budget Manager Tony Breitbach, Purchasing/Risk Manager Anthony Williams, President and CEO Q Casino and Resort Lance Carnahan, VP Casino Operations Rob Kormann, Director of Facilities Mark Plantery, ImOn Arena General Manager El Page 723 of 1264