Report to Mayor and City Council
Tuesday, March 21, 2023
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF AMENDMENT NO. 1 TO DESIGN-BUILD AGREEMENT WITH TRANE U.S. INC., AND APPROVAL OF RESOLUTION NO. 22-259 "A RESOLUTION OF THE CITY OF CARSON CITY COUNCIL AMENDING THE FISCAL YEAR 2022-23 BUDGET IN THE GENERAL FUND AND SPECIAL REVENUE FUNDS", PROVIDING FUNDS FOR ADDITIONAL WORK FOR PROJECT NO. 1662 - NEW AIR FILTRATION AND HVAC SYSTEMS AT CITY HALL AND THE COMMUNITY CENTER
Body
I. SUMMARY
Project No. 1662: Heating, Ventilation, and Air Conditioning (HVAC) Improvement Project at City Hall is part of the Capital Improvement Program (CIP) that consists of replacing old and outdated HVAC equipment such as air handler units, exhaust fans and chillers. These upgrades are intended to improve the indoor air quality in City Hall and update a system that is more than 40 years old. On January 26, 2021, the City of Carson and Trane U.S., Inc. (Trane) entered into a Design-Build Agreement (Agreement) whereby Trane agreed to provide design and construction services toward completion of the project.
As of March 2023, the project is substantially complete. The project was affected by supply chain related issues and inflation which have resulted in construction delays and price increases of construction materials and HVAC equipment. Additionally, to follow the American Society of Heating, Refrigerating, and Air-Conditioning Engineers ("ASHRAE") guidelines and improve the energy efficiency of the HVAC system at City Hall, the entire roof insulation system of the City Hall Building was upgraded. The supply chain issues, inflation, additional upgrades, and the unexpected construction challenges have depleted the construction contingency allocated to this project which necessitates the request for additional funding.
Staff therefore requests that the City Council approve Amendment No. 1 (Exhibit 1) to the Agreement to increase the contract sum from $5,822,925.00 to $6,987,346...
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