ADMINISTRATION - Robert Therres, Public Services Mgr./Asst. City Manager
Title
APPROVE QUOTE FROM TRANE FOR NEW CHILLER AT CITY HALL AND AUTHORIZE PROJECT BUDGET NOT TO EXCEED $300,000 FOR PURCHASE AND INSTALLATION OF CHILLER UNIT AT CITY HALL
Background
On June 28th, the main compressor on the Chiller Unit at City Hall failed and could not be repaired. Staff has since secured a rental unit and has solicited quotes from Johnson Controls/York and Trane for a replacement chiller. Both of these firms are members of Joint Purchasing Groups that Blaine is a member of. This means that both these quotes have gone through a formal process to be approved and saves the City the time and effort of doing our own formal bid process.
Staff asked both firms to bid several types of chillers, one which is the closest to replacing the failed chiller unit, to upgraded chillers that are more efficient and would use less energy.
Below is a table that shows the replacement chillers compared and a table that shows the most efficient chillers.
Replacement Bid
Johnson Controls Trane
Unit $257,784 $174,344
Valves $ 26,432 $ 56,842
Glycol $ 0 $ 3,458
Seed Filters $ 7,587 $ 5,675
Structural Eng. $ 5,000 $ 5,000
Total $296,803 $245,319
Delivery Mid-August One week
Upgraded Efficiency
Johnson Controls Trane
Unit $265,610 $214,845
Valves $ 26,432 $ 56,842
Glycol $ 0 $ 3,458
Seed Filters $ 7,587 $ 5,675
Structural Eng. $ 5,000 $ 5,000
Total $304,629 $285,820
Delivery Mid-September Mid-September
The higher efficiency chillers are estimated to save $7,000 - $9,000 per year in electric costs with a 20 year life expectancy that is $140,000 and $180,000 over the life of the chiller. After reviewing the quotes from each firm and looking at life cycle costs staff is recommending that the City accept the quote for the high efficiency chiller from Trane and set a project budget of not to exceed $300,000 for this chiller replacement.
The City has $250,000 budgeted in our Capital Equipment Fund for a new chiller and is researching if we need to bring a budget adjustment item back to the Council for the remaining amount. There may be enough available funds in the Capital Equipment budget to cover the total project.
Recommendation
Approve quote from Trane for new chiller unit and authorize project cost not to exceed $300,000 for a new chiller unit at City Hall.