Title
RESOLUTION AUTHORIZING THE SOLE SOURCE PURCHASE AND INSTALLATION OF AN ABSORBER SOLUTION PUMP, AND PROVIDING NOTIFICATION OF EMERGENCY INVESTIGATIVE AND REPAIR SERVICES AND CHILLER PUMP RENTAL, FROM TRANE IN THE TOTAL AMOUNT OF $240,348.53.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to contract with Trane for the purchase and installation of an absorber solution pump in the amount of $55,550.00, and have provided notification of emergency investigative and repair services of the failed chiller in the amount of $51,352.53, and emergency chiller pump rental in the amount of $133,446.00, payable from 540-0920-1499-5530 (steam, steam department, non-operating, improvements other than buildings).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the purchase and installation of an absorber solution pump and provides notification of emergency investigative and repair services and chiller pump rental from Trane in the total amount of $240,348.53.
Duluth Energy System (DES) identified issues with the Trane chiller system at the end of July and worked with Trane technicians to bring the system back online, but the unit failed again the first week of August. It was determined that the system needs a new absorber solution pump to function properly and lead time for the pump is approximately 70 days.
DES secured an emergency rental of a backup chiller system for one month at a cost of $73,473.00, including freight and installation. Due to the long lead time on the pump, an additional month of rental at a cost of $59,973.00 is required to meet chilling requirements through the end of the cooling season.
Trane is the industry expert in chilled water systems and is the vendor and OEM supplier for this system. Since the chiller system rented would need to run through the existing facility equipment, it was in the City’s best interest to use the same equipment supplier.
The chilled water system provides air conditioning to the County buildings, Federal building, Duluth News Tribune and the former water and gas building. All of these buildings are designed to be cooled during the summer months, are not set up for temporary or portable air conditioning, and became intolerable without the chilled water system functioning properly.