Amend contract with Total Mechanical, Inc. for additional compensation of $1,165,664 due to changed conditions for Water Pollution Control Lab Air Handler Replacement Project (amend Contract 30008163)

Water Pollution Control Laboratory (WPCL), located at 6543 N Burlington Ave, is an essential city facility and the largest full-service municipal environmental lab in Oregon. The WPCL is a critical component of public health for the region and generates roughly 60,000 analyses per year, in support of not only BES requirements, but of other City bureaus, such as Parks, Water, and Transportation, and regional partners. Built in 1997, the existing original Heating, Ventilation and Air Conditioning (HVAC) has reached the end of life and is beyond repair. In addition to providing climate control for the laboratory and office spaces the HVAC system runs exhaust to the fume hoods in the laboratory and is an essential component to lab ventilation and managing pollutants, bacteria, and odor in the building. Proper temperature variability of the building is critical for running samples. While the system was operating in Winter of 2023 changed conditions were found in the heating hot water system after multiple failures occurred. The heating hot water system required only minor modifications as part of the emergency repairs scope that were competed to date as that scope was focused on the ventilation and chilled water systems. These failures in the system caused significant damage to the building and prevented a portion of the building from being used for approximately 5 months. The current system will be replaced with a more efficient and environmentally sustainable heating hot water system that provides a lower total cost of ownership and lasts longer than the current technology. To address these previously unidentified conditions before the upcoming heating season this work needs to be addressed as part of the existing emergency contract with Total Mechanical, Inc. This legislation will authorize amending the existing contact to address these conditions. This is the 8th contract amendment for Total Mechanical, Inc. contract No 30008163. This amendment will add the replacement/upgrade of the Heating Hot Water system to the contract.

The contractors proposed change for replacing the heating hot water system to correct the current system conditions is $1,165,664. Costs for addressing this change in conditions were negotiated with Total Mechanical Inc. considering current market conditions and input from the Sazan the Design consultant on historical project costs. Funds are available in the Sewer System Operating Fund, FY 2024-25 Budget, Bureau of Environmental Services, BES Project No. E11346The proposed work removes/replaces the majority of the Heating Hot Water System and when combined with the work already completed as part of this project the level of confidence for this estimate is high. The action will not create immediate or long term financial or budgetary impacts. Long-term the new heating system will require less staff time and budget for maintenance.

Continuous operation of the lab is essential to delivering the levels of service required by BES as a public utility dedicated to the environment and public health and safety. Interruptions in operation would cripple BES’ ability to operate its wastewater treatment processes, jeopardize regulatory compliance, and adversely affect the non-BES entities who rely upon dependable and uninterrupted WPCL services. Because the work does not directly impact the community and involved replacement of mechanical equipment, public input did not shape the bureau’s recommended action.