Title
Village Hall HVAC Improvement Project - Phase 2 - Trane Turnkey
History
The Orland Park Village Hall, which was constructed in 1988, houses six (6) Village departments and approximately seventy-five (75) Village staff. While several facility improvements have been completed recently, including Board Room and office renovations, life safety and security upgrades, soffit and window repairs, and general aesthetics improvements, many other important building systems, including mechanical and HVAC systems, are original to the building.
Based on recommendations from the "2021 Facilities and Operations Master Plan", the Public Works Department worked with a consultant to complete the “Village Hall HVAC Study” in 2023. The goal of the study was to further evaluate the existing Village Hall heating, ventilation, and air-conditioning (HVAC) systems, and provide recommendations for upgrades. The study recommended a multi-phased (two-year) project approach that would result in better operational efficiencies, improved indoor air quality, higher level of occupant comfort, and increased reliability. Ultimately, this would require an extensive level of effort, including the replacement of existing boilers and RTUs, a reconfiguration of the hot water distribution, control upgrades, and improvements to occupant zoning.
As such, in 2023 the Public Works Department reached out to Trane, Inc., which offers “Turnkey Contracting and Engineering” HVAC solutions utilizing OMNIA Cooperative Contract (#3341), a joint purchasing cooperative. It should be noted that this same approach was utilized for the “Main Pumping Station Facility Improvement Project” in 2022, which came in under budget and on time.
Engineers from Trane subsequently visited Village Hall with Public Works Facility staff members to investigate the building’s mechanical and HVAC systems. In agreement with the Village Hall HVAC Study, Trane proposed a two-phase approach to the abovementioned issues. Phase 1, which is scheduled for completion in 2025, includes the replacement of the two (2) existing boilers with high efficiency condensing boilers and associated mechanical equipment. Phase 2, which includes the replacement of existing four (4) RTUs, ductwork, humidification/piping modifications, and VAV/control upgrades, is proposed to be designed in 2025 and completed in 2026. It should be noted that Phase 1 was approved by the Village Board on December 2, 2024 (see 2024-0854) and construction is scheduled to begin in the Fall, 2025.
Phase 2
A cost estimate for the design and construction work associated with Phase 2 of the Village Hall HVAC Improvement Project is complete and now being presented to the Board for review/approval. The next step in the Trane Turnkey process is for the Village to approve a Letter of Commitment to Trane, Inc. for desired scopes of work. The Letter of Commitment authorizes 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 for the execution of those plans based on OMNIA Racine Contract #3341.
A summary of the project cost estimates is provided below:
Village Hall Phase 2 Design Proposal: $47,850.00
Village Hall Phase 2 Design/Construction Cost Estimate: $3,540,000.00
As part of the Letter of Commitment for Phase 2, which is attached for review, the Village would commit to reimburse Trane for the engineering costs of $47,850.00 associated with the design plans if project does not move forward with using Trane after the Proposal Stage. As the Village would own the engineering documents developed by Trane, should the Village opt to not move forward with Trane as the General Contractor for the project, the Village would be able to use those plans as bid documents. If the Village opts to move forward after the Proposal Stage with Trane, Inc. as the project General Contractor, then all associated engineering costs would be included in the stated proposal pricing. For a quick comparison, an A/E would usually charge at minimum 4% of construction cost or $141,600, which saves the Village approximately $100,000.00 in design fees.
Under this scenario, Trane, Inc. would act as the project engineer and general contractor, and 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. As previously mentioned, this same approach was successfully utilized for the “Main Pumping Station Facility Improvement Project” in 2022.
Based on their initial scope estimates, the project cost estimate for the construction of Phase 2 is $3,540,000.00. During the design processes, opportunities to reduce this cost will be factored. Permission to proceed with the final Village Hall Phase 2 project plans and proposal from Trane, Inc. would require a separate review and approval by the Village Board of Trustees, which would occur after the 2026 budget review period is complete.
Funding for the construction of Phase 2 of the Village Hall HVAC Improvements is currently budgeted in the 5-Year Capital Budget in a total amount of $3,540,000.00 ($1,770,000.00 per year) over two years (2026-2027). Based on the actual feasibility of completing Phase 2 in a single year, an adjustment to the Capital budget may need to be requested.
Financial Impact
Funding for the Phase 2 Engineering Costs are available in GL account 3008010-432500.
Recommended Action/Motion
I move to waive the competitive bidding in favor of approving the use of the cooperative purchasing contract OMNIA Partners Trane Racine #3341;
AND
Approve the “Letter of Commitment” for the Orland Park Village Hall Phase 2 - HVAC System Improvements with Trane, Inc. dated February 26, 2025;
AND
Approve an agreement with Trane for engineering costs not-to-exceed $47,850.00 associated with the Phase 2 design plans if the project does not move forward after the Proposal Stage;
AND
Authorize the Village Manager to execute all related contracts, subject to Village Attorney review.