TO: Mayor and Commissioners
FROM: John Morgan, Director Environmental Services Director
THROUGH: Donald B. Cooper, City Manager
DATE: September 20, 2016
Title
RATIFICATION OF EMERGENCY PURCHASE WITH CONSERVE BUILDING SERVICES, INC. TO REPLACE THE CITY HALL CHILLER
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Recommended Action:
Recommendation
Motion to ratify the emergency purchase with Conserve Building Services, Inc. to replace the City Hall Chiller in the not-to-exceed amount of $113,000.
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Background:
On November 4, 2014 Commission approved the award Bid 2014-43 for an Agreement with Conserve Building Services, Inc. for HVAC Chillers and Tracer Units, Maintenance and Service at City Hall and Delray Beach Library for on-going chiller parts, repairs and maintenance with two consecutive renewal terms of one year. This equipment is critical to the cooling systems at City Hall and the Delray Beach Library; if either unit fails the entire cooling system in the respective facility does not function.
The existing chiller at City Hall has failed on multiple occasions over the past few weeks. It is approximately 20 years old and has been repaired in the past, but repairs have not provided a long-term solution as the unit is nearing the end of its life expectancy. Maintenance now checks the chiller unit every morning for failures and almost every day the unit is in alarm state, most recently it has been shutting down on a high temperature alarm. Because of the age of the chiller, the most practicable way to eliminate unexpected failures and reliability issues is to replace the chiller. City Manager has approved the replacement of this piece of equipment as an emergency to avoid further repairs, monitoring costs, and equipment failures than increase the risk of delays or outages in services provided to customers at City Hall.
Conserve, the City's contracted supplier for Chiller maintenance and service has provided a quote of $110,603 for the emergency replacement. A contingency of $2,397 is requested to cover any unforeseen miscellaneous parts required for the installation. Delivery time of the equipment and the installation is estimated at 8 - 10 weeks after receipt of the order so expediency in issuing the purchase award is paramount. Additionally, Conserve has agreed to renew the Agreement through December 3, 2017.
This purchase is in accordance with City Code of Ordinances Section 36.02 (C) (5), "Direct Acquisition Method, Emergency Acquisitions".
City Attorney Review:
Approved as to form and legal sufficency.
Finance Department Review:
Finance recomends approval.
Funding Source:
Funding is available from budget account code 334-6111-519.64.90
Timing of Request:
Immediate replacement of the City Hall Chiller is needed in order to provide an acceptable and safe indoor environment for staff and the public.