Approval Given To Replace Mosaic Place's Boilers

By Robert Thomas

After just 11 years of service the boilers at Mosaic Place are in need of replacement at an estimated cost of $125,000.

That is what Council learnt this past Monday evening. They also learnt the costs were a lot lower than what they could have been to get the facility new boilers.

“I wish to express appreciation to Mr (Ryan) McIvor for finding a solution to boilers that have (lasted) way past their expected life span and in essence we are having obsolete equipment replaced using insurance proceeds at a much reduced rate than we will normally pay,” city manager Jim Puffalt told Council.

At the present time one of the Mosaic Place’s boilers has been taken off-line as it is not operable and the other boiler is operational although there are three cracks in its heat exchanger. The one boiler if it does go down and is no longer operational will require a temporary backup heating solution if it does go down.

Mosaic Place’s insurance will pay the cost for a temporary backup heating solution if it is required with an initial monthly cost of $31,806 plus taxes and $25,766 for each month thereafter.

The insurance company is willing to pay for either new boilers or heat exchangers depending on which one is cheaper.

The replacement option would give the facility brand new boilers whereas replacing the cracked heat exchangers would mean boilers with new heat exchangers with most other components 12 years old.

Replacing the heat exchangers would provide a six month warranty but replacing the boilers would provide ten years of warranty.

The heat exchangers needed replacement after being replaced just 18 months ago.

In his report to Council Mosaic Place’s Ryan MacIvor, District General Manager, Spectra Venue Management said the problem with the first boiler was noticed with dropping glycol levels in December 2021.

After extensive investigation, due to the complicated piping and the heating and cooling systems using the same glycol source, the problem was tracked to one of Mosaic Place’s two boilers which had to be shut down.

Then a few weeks later when glycol levels started to drop a second investigation found the second boiler had developed similar heat exchanger cracking problems.

“We found out the second boiler was also (having problems) the heat exchanger had failed as well. It is operable but it has failed.”

The two incidents had two resultant insurance claims filed.

He detailed how new boilers cost $269,000 but replacing the heat exchangers cost $178,000 so for a difference of $125,000 the facility could get brand new boilers with ten year warranties versus the new heat exchanger option with only a six month warranty.

“For $1215,000 you are getting brand new equipment for a lot less by using the leverage of that insurance option,” MacIvor said.

Councillor Logan said he favoured the new boiler option because the boilers already had had problems and the heat exchangers replaced just 18 months ago.

“If we don’t do this option and just replace the heat exchanger we might be here in a year and a half with no warranty and in the middle of a big event perhaps, he said adding “to me it isn’t worth it (replacing just the heat exchangers) it doesn’t make any sense.”

Councillor Heather Eby said she supported the replacement option.

“Mosaic Place is ten years old now, 11 so these things are going to start. And let’s do it right and we get a ten year warranty so we can move forward on that,” Councillor Eby said.

“This is leveraging ionsurance dollars so we are getting really good bang for our buck and brand new equipment,” she said.

Councillor Kim Robinson also supported the replacement versus the repair option.

“Let’s do the right thing and get it replaced so we don’t have it…failure at major events,” Councillor Robinson said.

Council was unanimous in approving the boiler replacement plan.