On November 5, 2019 voters approved Proposition D which included $7,395,000 for facility improvements at existing municipal facilities including the replacement of Heating, Ventilation and Air Conditioning (HVAC) systems. The Phase One HVAC Replacement Project includes the replacement of HVAC systems at the Service Center, Fire Station 2, Surveyor Pump Station, Vitruvian Restrooms, Addison Circle Park Pavilion, and Stone Cottage. Phase One also includes the replacement and upgrade of the Police gun range HVAC which will filter the air within this facility to provide a safe environment for users of the range. The HVAC systems at each of these facilities has exceeded it useful life and is due for replacement.
Staff, along with the Town's representative McKinstry, solicited bids through a Request for Proposal (RFP) process. Two complete proposals were received. A committee was formed to review the proposals. TDIndustries was the low bidder. The RFP process allows for negotiation with the low bidder. Staff and McKinstry clarified and negotiated a final cost of $656,660.51 (including payment bond, performance bond, and maintenance bond). This final cost was arrived at by accepting or rejecting items that were deduct/alternates. TDIndustries received excellent reviews.
HVAC Equipment Installation Bids
| Vendor |
Base Cost |
Negotiated Cost |
| TDIndustries |
$747,536.00 |
$656,660.51 |
| Decker Mechanical (DMI) |
$775,358.10 |
N/A |
The Phase One HVAC Replacement Project consists of the purchase of the necessary HVAC equipment AND separate installation of that equipment. The equipment purchase is being proposed as a separate item on the November 9, 2021 agenda and is not included in this bid response. The recommended vendor for installation services is TDIndustries for the negotiated amount of $656,660.51. The total Phase Once HVAC Replacement Project cost for equipment and installation is $1,167,716.51.
The Phase One HVAC Replacement Project (equipment and installation) is over budget by $513,280.51. This is attributed to increases in both materials and labor for HVAC work since the estimates for the bond program were obtained in 2019; the Police gun range requiring unanticipated electrical and structural work that was discovered during the design process that will have to be corrected; and, an under-estimation of project costs.
Other Proposition D Phase One Projects (roof replacement costs and Pavilion ADA project) have come in under budget in an amount that covers the Phase One HVAC Project overage. Proposition D Phase One Projects have a total budget of $2,387,858.00. If approved, the Phase One HVAC Replacement Projects would bring the total cost of all Proposition D Phase One Projects to $2,373,601.00 which is $14,257.00 under budget. |