CR 07-037 Award of Bid, City Hall HVAC Upgrade ProjectG~TY OF
March 28, 2007 H O P K I N S Council Report 2007-037
AWARD OF BID, CITY HALL HVAC UPGRADE PROJECT
Proposed Action
Staff recommends adoption of the following motion:
Move that City Council award contract in the amount of $102,000 for Hopkins City Hall
HVAC Upgrade, Project #2006-18 to Thelen Heating and Roofing Inc,.
Overview
As part of the city's ongoing maintenance and upkeep of City buildings, City staff
proposed replacing the existing City Hall 80 ton cold water air conditioning chiller and
air handler with two rooftop heating, ventilation and air conditioning (HVAC) units. The
goal was to significantly reduce the cost of energy consumption needed to cool and
heat the existing City Hall. The energy savings with this proposed system upgrade is
significant with an anticipated project payback of 7-8 years. We also anticipate a
savings from reduced maintenance by replacing our current 40 year old system.
The Engineer's estimate for this project was $90,000.00.
The City received seven bids; the lowest bid was for $102,000.00 from "Thelen Heating
and Roofing".
The City had opened bids for this project a month ago and rejected because only three
bids were received and all were too high -the low bid was $159,000. After clarifying
some language and supplying a portion of the work to be completed in house we were
able to substantially lower the total cost.
Staff recommends awarding the contract.
Primary Issues to Consider
• Will the project require additional funding from the city?
• Estimated cost for the HVAC Upgrade
• What is the time frame for this project? + bid tabulation
Su ortin Information
•. Capi I Improvement Fund (305) -working capital report
Norbert Kerber:
Building/Equipment Supt.
Financial Impact: $102,000 Budgeted: Y/N Y - $76,000 Source: Fund 305
Related Documents (CIP, ERP, etc.): 2007 CIP project
Notes:
PRIMARY ISSUES TO CONSIDER:
Will the project require additional funding from the City?
Yes, the project had been budgeted at $76,000 in the 2007 CIP. However, the
2006 General Fund ended in a stronger position than originally anticipated and
the Finance Director believes that an additional $50,000, above the 2007
budgeted $100,000 GF transfer, will be available to transfer into the Capital
Improvement Fund (305).
Estimated Cost for the HVAC upgrade?
The total estimated cost is the bid amount plus the cost of other work that will
need to be done but was deleted from the contract. Several contract items were
deleted and several modified, one item was a screen fence around the rooftop
units, this saved about $20,000. We will analyze the rooftop units after
installation to determine if screening is needed and budget in 2008 if needed; the
cost will be less due to the city contracting the work. Another big item cut from
the project was the demolition of the existing air handler. This saved an
estimated $12,000 and the work can be done by city personnel as time permits.
We do anticipate an added cost of around $2,000 for integrating the new HVAC
units to our existing controls software. This cost is 1/3 the cost submitted to the
contractors from the controls vendor. We will work with the controls contractor
that installed our existing system and configure the graphics in house.
Our estimated cost above the contract amount is about $4,000: this takes into
account any change orders and controls work.
What Is The Time Frame For This Project?
We had anticipated awarding this contract at this time. The work is scheduled for
mid-April through May 25, 2007.
Bid Tabs:
Thelen H & A. Inc 102,000
Master Mechanical 109,000
Bostrom HVAC 111, 000
TEK Engineering 114,000
Cool Air 121,000
Shadegg Mechanical 118,500
New Mechanical 112,000