Memorandum

City of Lawrence

Utilities Department

TO:	David L. Corliss – City Manager Cynthia Wagner - Assistant City Manager Diane Stoddard - Assistant City Manager
FROM: CC:	Mike Lawless – Asst. Director of Utilities Dave King – Utilities Maintenance Manager
	Dave Wagner – Director of Utilities Philip Ciesielski – Asst. Director of Utilities Beth Frailey Krishtalka – Management Analyst Mark Hegeman – Water Systems Manager
Date:	July 6, 2010
RE:	July 13, 2010 Agenda Item – Award contract for Wastewater Plant HVAC Chiller Replacement

Please include the following item on the City Commission Agenda for consideration at the July 13, 2010 meeting:

Award Bid No. B1039 for the Wastewater Treatment Plant HVAC Chiller Replacement to Chaney Incorporated in the amount of $67,450.00 and authorize the City Manager to execute a contract agreement.

Project History/Status

The existing Chiller used for cooling the administration building at the wastewater treatment plant was installed as part of the expansion project in 2000. Due to the nature of the process at this location, this unit is exposed to a corrosive atmosphere and has experienced several component failures and repairs over the last ten years. Currently, the unit has one compressor and one condensing coil that have failed. The costs of these repairs are approximately 75% of the cost of replacing the entire unit. The new chiller will be more efficient and therefore should cost less to operate. 

On 6/15/10 the City Commission approved a bid date of 7/6/10 for this project. Four bids were opened at that time (bid tab attached) with Chaney Inc. being the low bidder at $67,450.00.    

Project Funding: 2010 Operations and maintenance budget 501-7-7310-2536

Action Request:  Staff recommends award of Bid No. B1039; Wastewater Plant HVAC Chiller Replacement to Chaney Inc. in the amount of $67,450.00 and authorize the City Manager to execute a contract agreement.

Thank you for your assistance. Please advise if you have any questions.