Title
MOTION TO APPROVE THE AGREEMENT WITH TRANE U.S., INC FOR REPAIR AND OVERHAUL SERVICES FOR CHILLER #1 AT THE CHARLES F. DODGE CITY CENTER IN THE AMOUNT OF $381,848 WHICH INCLUDES A CONTINGENCY IN THE AMOUNT OF $90,000 FOR A POTENTIAL MOTOR EXCHANGE IF DETERMINED NECESSARY DURING THE OVERHAUL PROCESS AND THE PAYMENT BOND AND PERFORMANCE BOND IN THE AMOUNT OF $4,313, UTILIZING PRICING ESTABLISHED BY OMNIA CONTRACT #3341 "HVAC PRODUCTS, INSTALLATION, LABOR BASED SOLUTIONS AND RELATED PRODUCT AND SERVICES", PURSUANT TO SECTION 35.18(C)(6) OF THE CITY'S CODE OF ORDINANCES
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinance is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinances is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18 (C)(6) states that “Cooperative purchasing plans are exempt from this section.”
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval".
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $100,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
SUMMARY EXPLANATION AND BACKGROUND:
1. The Charles F. Dodge City Center cooling system consists of two Trane 500-ton centrifugal chillers designed to provide cooling capacity and operational redundancy for the facility.
2. On January 2, 2026, Chiller #1 experienced an electrical failure and was removed from service. Since that time, City Center has been operating solely on Chiller #2. Initial diagnostic testing identified failed contactors, electrical arcing, and a blown control fuse. When those components were repaired, subsequent troubleshooting determined that the Adaptive Frequency Drive (AFD) suffered a significant electrical failure and requires replacement.
3. Trane evaluated repair alternatives and determined that replacement of the AFD alone would cost $124,150. Trane further recommended combining the AFD replacement with its CenTraVac R’newal Program, which includes a comprehensive overhaul of critical chiller components, including compressor bearings, lubrication system components, motor inspections, controls inspections, tube cleaning, and other manufacturer-recommended maintenance items.
4. Administration has reviewed Trane’s recommendation and concurs that the comprehensive overhaul option is the most prudent approach. The proposed work will restore Chiller #1 to reliable operating condition, extend the useful life of the equipment, reduce the risk of future failures, and provide a seven-year parts and labor warranty on major chiller components.
5. During the overhaul process, Trane will conduct a detailed inspection of the compressor motor. Because the motor cannot be fully evaluated until the chiller is disassembled, staff is requesting authorization of a contingency amount not to exceed $90,000 for a motor exchange should conditions warrant replacement. Authorizing the contingency at this time will avoid additional mobilization, rigging, labor costs, and extended downtime associated with disassembling the chiller a second time. It should be noted that currently Trane believes the motor will not require replacement.
6. On June 15, 2022, Racine County, Wisconsin, acting as lead agency for OMNIA Partners, advertised IFB # RC2022-1001 to establish a national cooperative contract for HVAC products, installation, labor-based solutions, and related products and services.
7. IFB # RC2022-1001 specifically states that the resultant contract would be a National Contract / Master Agreement distributed by OMNIA Partners available to other public agencies nationally, including state and local governmental entities, public and private primary, secondary and higher education entities, non-profit entities, and agencies for the public benefit (“Public Agencies”).
8. Trane U.S. Inc. was the lowest responsive, responsible, and qualified bidder based on the requirements issued in the IFB. The County Executive, who was granted authority on January 11, 2022, by the Racine County Commissioners, approved the contract award. The contract was executed on August 17, 2022, with an effective date of September 1, 2022, through August 31, 2027.
9. Under OMNIA Contract # 3341, Trane U.S. Inc. can provide products and services covering the following areas:
Operate, Maintain & Repair
- Connectivity and Cloud Services
- HVAC System Management
- HVAC System Repair
- Rental Solutions
- Parts and Supplies
Energy & Sustainability
- Energy conservation Measures
- Energy Monitoring & Analysis
- Active Energy Management
- Financing & Energy Services Contracting
Design, Upgrade & Modernize
- Upgrading Existing Equipment
- Building Systems Design and Upgrades
- HVAC System Retrofits
- Indoor Air Quality (IAQ)
Building Systems and Technologies
- Variable Refrigerant Flow (VRF) and Ductless Systems
- Chillers
- Packages Units and Split Systems
- Air Handlers, Terminal Devices, Vav and Fan Coils
- Variable Frequency Drives (VFD)
- Energy Storage
- Precision Cooling
Building Management and Automation
- Solutions for Large Buildings and Campuses
- Small Building Solutions
- Air-Fi® Wireless Communications
- Lighting Solutions
- Controls Solutions for Light Commercial Contractors
10. On June 6th, 2026, the Public Services Department received a proposal from Trane U.S. Inc. for the replacement of the Adaptive Frequency Drive (AFD) with its CenTraVac R'newal Program utilizing pricing established under OMNIA Contract # 3341, “HVAC Products, Installation, Labor-Based Solutions, and Related Products and Services.”
Proposal # H4-702932-26-001, in the amount of $291,848, covers the CenTraVac Compressor R'Newal Service and the replacement of the AFD at Charles F. Dodge City Center and is broken down as follows:
Replace Adaptive Frequency Drive (AFD) $124,150
CenTraVac R'Newal Services $163,385
Add for Performance & Payment Bond if Required $4,313
Total Price for all Options listed above $291,848
Contingency amount for motor replacement $90,000
Total Agreement amount including contingency $381,848
11. Under OMNIA Contract #3341, Trane is providing key equipment for the project at confirmed contract multipliers. The AFD Replacement is priced using a 0.6545 multiplier and the CenTraVac R'Newal Service uses a 0.6544 multiplier. These contract-based discounts result in substantial savings on equipment. In addition to the standard OMNIA contract discounts, Trane has extended an additional discount resulting in a savings of $16,384.46 from the minimum discount Trane is required to provide per contract.
12. Request the Commission approve the agreement with Trane U.S., Inc for the repair of the Adaptive Frequency Drive (AFD) and the CenTraVac R,'Newal Program at the Charles F. Dodge City Center in the amount of $381,848 which includes a contingency in an amount equal to $90,000 and the cost of the payment and performance bond in the amount of $4,313, utilizing pricing established by OMNIA contract #3341 "HVAC Products, Installation, Labor Based Solutions and Related Product and Services", pursuant to section 35.18(C)(6) of the city's code of ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $381,848
b) Amount budgeted for this item in Account No: None
c) Source of funding for difference, if not fully budgeted: Upon approval of this agenda item, a budget adjustment will be requested as follows:
From:
$381,848 - 001-519-0800-530010-0000-000-0000 - Contingency
To:
$190,924 - 001-573-7010-546150-0000-000-0000-00340 - Civic Center
$190,924 - 001-519-6001-546150-0000-000-0000-00345 - City Hall/Commission Chambers
d) 5 year projection of the operational cost of the project: Not Applicable as this is a repair.
e) Detail of additional staff requirements: Not Applicable
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable