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AGENDA RECOMMENDATION |
Item No: 4.A.
Economic Development Authority
- Meeting Date:
- 06/16/2025
Agenda Item:
Resolution considering bids on Capital Improvement Project 11139; Orness Plaza Heat Pumps Phase 3.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
Capital Improvement Project 11139, Orness Plaza Heat Pump Removal and Replacement Phase 3, was advertised for public bidding on May 1, 2025. One (1) contractor submitted a bid for the project. The contract has a substantial completion date of November 7, 2025.
The project, as bid, includes the replacement of eight remaining heat pumps that are installed above the ceilings in commons and office areas that were not replaced during Phase 1 & 2 of the project at Orness Plaza. The heat pumps were installed when the building was fully renovated in 2011 and have reached the end of their useful life. There have been several refrigerant leaks in these units over the last several years and temporary fixes are no longer working to repair the units. These replacements are part of a three-phase project spanning the budget years 2023-2025 to replace all the units in the building and will allow us to get on a rotation schedule for future replacement planning. A bid alternate was also packaged in the Phase 3 bid to stock 9 additional heat pumps at Orness Plaza in the event there are future catastrophic failures.
Adams Mechanical, LLC out of St. Clair, MN submitted the apparent low bid in the amount of $51,805 (Base Bid) and $36,225 (Alternate Bid) with all documentation conforming to the bid requirements set forth by the authority and federal regulations.
Staff recommends awarding the base and alternate bids totaling $88,030 due to favorable pricing on the alternate bid. The project budget, as stated in the feasibility report, was set at $118,800 and those funds are set to come out of the Housing Capital Budget. The 2025 CIP budget for this project is $120,000.
The project, as bid, includes the replacement of eight remaining heat pumps that are installed above the ceilings in commons and office areas that were not replaced during Phase 1 & 2 of the project at Orness Plaza. The heat pumps were installed when the building was fully renovated in 2011 and have reached the end of their useful life. There have been several refrigerant leaks in these units over the last several years and temporary fixes are no longer working to repair the units. These replacements are part of a three-phase project spanning the budget years 2023-2025 to replace all the units in the building and will allow us to get on a rotation schedule for future replacement planning. A bid alternate was also packaged in the Phase 3 bid to stock 9 additional heat pumps at Orness Plaza in the event there are future catastrophic failures.
Adams Mechanical, LLC out of St. Clair, MN submitted the apparent low bid in the amount of $51,805 (Base Bid) and $36,225 (Alternate Bid) with all documentation conforming to the bid requirements set forth by the authority and federal regulations.
Staff recommends awarding the base and alternate bids totaling $88,030 due to favorable pricing on the alternate bid. The project budget, as stated in the feasibility report, was set at $118,800 and those funds are set to come out of the Housing Capital Budget. The 2025 CIP budget for this project is $120,000.