HomeMy WebLinkAboutVIII-10 Change Order - HVAC - Boiler Project
City Council Memorandum
To: Mayor Fasbender & City Council Members
From: Justin Fortney, City Planner
Date: March 15, 2023
Item: Notice of Pending Change Order - City Hall HVAC Project – Burnn Boiler and Mechanical LLC.
COUNCIL ACTION REQUESTED
Council is requested to consider the pending change order for concerns related to approval.
BACKGROUND INFORMATION
The City was appropriated two million dollars of State General Obligation Bond grant dollars for the
City Hall repair project, part of this project included HVAC work to reduce City Hall humidity. This
includes the replacement of the inefficient and obsolete boilers in City Hall.
Replacement of the boilers will be difficult due to the large size of the modern boilers, necessitating
partial and temporary removal of the concrete basement steps and boiler room wall, along with a
myriad of building and fire safety code upgrades to the boiler and fuel oil storage rooms. During a
preconstruction consultation with the contractor and project engineer, it was determined that a better
design would be to remove all boilers, natural gas, and fuel oil from City Hall and replace the boilers in
the Police Station with new larger efficient units that can heat both buildings. The existing boilers in the
Police Station are scheduled for replacement in two years for an estimated 300k-500k. This
configuration will be more energy efficient, reduce operational and maintenance duties, Increase the
amount of discounted natural gas through our curtailment agreement, and reduce future boiler
replacement expenses by half. The air-conditioning chiller on the roof of the Police Station is already tied
into the City Hall HVAC system.
Due to project timing, delay of the boiler fabrication the extra couple of weeks needed for design and
change order development is not prudent. Staff is informing the Council of the concept change to
resume boiler construction with the new sizing. Below is a rough estimate of the change order. The
engineering design will likely add some smaller additions to the proposed budget. An official change
order is anticipated for the June 5th City Council meeting.
STAFF RECOMMENDATION
Staff is recommending to upsize the boilers and design a change order to install two new boilers in the
Police Station to heat both buildings.
ATTACHMENTS
- Change Order Estimate
VIII-10
Preliminary Change Order Estimate
The next lowest bid for the original contract, which was awarded to Burnn for $588,000 was Magnuson
Construction for $754,484
Adds
Boiler Upsizing $ 114,231
Additional Boiler Demo $ 10,000
Glycol $ 24,000
Excavation and Underground
Piping $ 50,000
Backup Fuel Improvements $ 20,000
Total Adds $ 218,232
Total Deductions $ (61,200)
New Contract Value $ 745,032
Addition to Contract $ 157,032
Original Contract $ 588,000
Deductions
Fire Proofing Rooms $ (8,200)
Crane Work Flue Install $ (52,000)
Water Softener Relocation $ (1,000)
Total Deductions $ (61,200)
VIII-10