COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Bill Young, Transportation and Maintenance Superintendent
SUBJECT:Title
Discussion and Action: Cooperative Purchase of Heating Ventilation and Air Conditioning Units for Repair and Replacement from Trane U.S. Inc. (Bill Young)
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FUNDING SOURCE:
General Fund
PURPOSE:
To consider the cooperative purchase of Heating Ventilation and Air Conditioning (HVAC) unit replacement and repairs in various departments/facilities throughout the City utilizing the Omnia Partners Cooperative Purchase Contract No. 3341 under the City’s Cooperative Purchase Agreement with Trane U.S. Inc., (500481) in accordance with City Code Section §3.10.010.2 (A)(1) and 3.10.030.1.
BACKGROUND:
The Public Works Department Facilities Maintenance Division (Facilities Maintenance) implemented an HVAC replacement program to replace units that are past their estimated useful life, some of which are still using R-22 refrigerant, which is obsolete. This scheduled replacement program will reduce emergency replacements which are often an arduous, expensive and time-consuming process. Taking a proactive approach to the replacement of aging units will help to ensure consistent working conditions for employees and equipment.
The approximate lifespan for a commercial HVAC unit operating under temperatures in excess of 100 degrees is 15 years with regular preventative maintenance. Lake Havasu City has over 235 HVAC units on its City-owned properties, of which 105 are over 14 years old. Replacement of 15 to 16 units per year would establish a 15-year replacement life cycle. The cost of these units will vary by size. Older, nonfunctioning, and critical use units will take priority. In the current fiscal year, the Facilities Maintenance has already had numerous instances of unexpected repairs and replacements of HVAC systems. We anticipate the amount of emergency repairs and replacements to increase annually as systems continue to age.
COMMUNITY IMPACT:
Lake Havasu City regularly records temperatures over 100 degrees for months at a time. Vital components in our infrastructure rely on HVAC systems to keep from overheating. A failure of these systems could result in disruption to critical operations throughout the City. Replacement of units that are past their useful life is essential to ensure that City departments can continue to operate efficiently and effectively for the community.
FISCAL IMPACT:
Funds in the amount of $526,650 are allocated and available for HVAC Service, Repair, and Replacement in the Public Works Facilities Maintenance Division Fiscal Year 2024-25 budget within the General Fund.
ATTACHMENTS:
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SUGGESTED MOTION:Recommended ACtion
I move to approve the cooperative purchase of HVAC units with Trane U.S. Inc., utilizing Omnia Partners Cooperative Purchasing Contract with a termination date of August 31, 2027; authorize the City staff to exercise the option to renew the Agreement for one (1) additional five (5) year term; and authorize the installation of HVAC unit replacements and repairs for Fiscal Year 2024-25 and subsequent years in an amount not-to-exceed the approved annual budget amount for that purpose.