Title
Rec Admin HVAC Improvement Project - Final Approval
History
On June 3, 2024, the Village Board of Trustees approved a Letter of Commitment (LOC) with Trane, Inc. (Trane) for the Rec Admin HVAC Improvement Project. The LOC authorized Trane to move to the Proposal Stage in which Trane would complete a full set of project design plans and provide the Village with a cost proposal not to exceed $1,394,000.00 for the execution of those plans. This project would be completed in a single phase. Pricing for this project is in accordance with OMNIA Cooperative Contract #3341.
The Public Works Department subsequently worked with engineers from Trane to refine the scope of work, optimize the project budget, and finalize project design plans. The project scope of work, a summary of which is attached, includes the replacement of the two (2) existing Air Handling Units (AHUs) with high efficiency air-cooled chiller, thermal storage tanks, air handling unit, and Variable Air Volume (VAV) boxes. Additional work includes the replacement of exhaust louvers, domestic water heaters, and condensate pump systems.
As Trane would act as the project engineer and general contractor, the scope of work includes full construction management, mechanical/electrical/structural engineering, installation and subcontracting, material shipping and storage, and a one (1) year labor and materials warranty.
Upon completion of the project plans, which are attached for reference, the final proposal price submitted by Trane, Inc. was $1,260,765.00, or $133,235.00 less than the original cost estimate. The cost reduction is a result of project efficiencies identified by Public Works Staff and a competitive internal bidding process by Trane. As previously mentioned, proposal pricing is based on OMNIA Cooperative Contract #3341. It should be noted that the Village may request a third-party review of the proposal to ensure the Trane proposal is in accordance with OMNIA Cooperative Contract. A sample third party review of a previous Trane project proposal is attached for reference.
It should also be noted that this project would qualify for IRA (Inflation Reduction Act) ITC-48 (Investment Tax Credit) incentives. Incentives range from 30% to 40% of the qualifying project value credit to the Village after completion of project, meaning the potential incentive amount for this project could range from approximately $243,000 to $324,000. The actual ITC incentive is in the process of being verified by a 3rd party consultant. As a part of their scope of work, Trane will advise and assist with facilitating ITC application process and required support documentation.
Permission to proceed with the final Rec Admin HVAC Improvement Project plans requires approval by the Village Board of Trustees. As such, approval of the proposal submitted by Trane, Inc. dated August 21, 2024, for the Rec Admin HVAC Improvement Project is now requested. A project contingency is not requested as Trane guarantees that no change orders will be necessary to complete the full scope of work due to thorough site visit inspections.
This agenda item is being considered by the Committee of the Whole and the Village Board of Trustees on the same night.
Financial Impact
Funds from capital account 3008010-570100 in the amount of $1,394,000.00 are available for this project. The actual project cost will be $1,260,765.00.
Recommended Action/Motion
I move to approve the waiver of the competitive bid process in lieu of participation in joint purchasing cooperative OMNIA Cooperative Contract #3341 and authorize the approval and execution of a vendor contract with Trane, Inc. for the Rec Admin HVAC Improvement Project, based on Trane’s proposal dated August 21, 2024, for a total not-to-exceed contract price of $1,260,765.00;
AND
Authorize the Village Manager to execute all related contracts, subject to Village Attorney review.