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Home My WebLink About#09 - Motor Power Clarifications Change OrderSTAFF REPORT DATE: July 5, 2022 REGULAR AGENDA ITEM: City Center-Public Works Addition Change Order-Motor Power Clarifications SUBMITTED BY: Kristina Handt, City Administrator BACKGROUND: At the November 3rd meeting, Council awarded bids for the new city center and public works addition. Also established at that time was Guaranteed Maximum Price (GMP) with H+U for construction costs. The GMP was $13,402,788. Per the city’s purchasing policy: Change Orders Change orders may occur due to City driven changes, errors and omissions, field directives, unforeseen/hidden conditions, regulatory requirements or changes that are contractor driven. Changes that need to be made during construction need to be addressed and approved in a timely manner in order to keep the project on schedule. 1) For a change order less than $100,000, which does not result in exceeding the overall project budget, the City Administrator may approve these. 2) At the discretion of the City Administrator, for a change order less than $100,000, but still within the scope of the overall project budget, it may be presented to the City Council for consideration and approval. 3) For any change order that results in exceeding the overall project budget, and/or exceeds $100,000 must be approved by the City Council. ISSUE BEFORE COUNCIL: Should Council approve the change order related to Motor Power Clarifications for the City Center and Public Works Addition project? PROPOSAL: Attached is pricing for ASI#12R Motor Power Clarifications which exceeds $100,000. This ASI is for adding the low ambient heating equipment to the VRF system and the corresponding added electrical components needed for that equipment. The following is an explanation from Leo A Daly’s mechanical engineer for why the add is needed. “Until recently (last two years or less), VRF systems designed for cold weather applications, like Minnesota, have needed a supplemental heat source to provide adequate heat supply during sub-zero outside conditions. This is similar to other split systems, mini splits, and air source heat pumps that utilize air cooled, reverse refrigerant flow systems ( heat pumps) for heating. In the past supplemental heat could be provided by boiler backup / hydronic systems, electric heaters, and heated condensing unit enclosures. Recent improvements in VRF technology has allowed VRF companies to increase capacity and heat consistently at cold conditions ( -20F). From the beginning, the intent of our VRF system for Lake Elmo has been to utilize the VRF system for cold weather heating and not to provide additional boilers / hydronic systems or heated condensing unit enclosures to accomplish this. Our original system selections didn’t include the new low ambient heating equipment by mistake, and this was found shortly after CDs were issued. We revised the systems via PR#12 to include low ambient heating and also added small electric unit heaters for back up in the areas served by smaller heat pumps systems. This upgraded system provides the necessary heat for cold weather conditions without additional boilers / heated enclosures. The improved technology of the low ambient system requires less equipment / less space when compared to the previous VRF systems with supplemental heat. In either system, there would have been an additional cost for boilers / heated enclosures or the improved low-ambient technology. We believe the low ambient system is the better option for Lake Elmo. It does not require multiple gas boilers, heating water pumps, expansion tank, air separator, building wide piping system (two-pipes, supply and return), hydronic heaters ( baseboard), and associated controls to make this system operate in conjunction with the VRF system. That’s a lot of equipment and space tied up into supplemental heat that operates less than 10% of the year, when the low-ambient VRF upgrade can accomplish the same results without additional equipment. Regarding the cost increase in ASI-12, this appears to be on par with new technology system upgrades like this. The upgraded VRF required the electrical upgrades to meet the increased electrical load of the low ambient system. The non-VRF heat pump systems required cost effective electric heaters added in critical spaces to ensure heat during the extremely cold conditions, when the heat pumps will not operate. The indoor VRF units required minimal changes, and some heat pumps were absorbed into the low ambient VRF system to reduce the need for electric heater. All of these things added and shifted costs appropriately to provide the best system option for Lake Elmo and meet the design intent.” FISCAL IMPACT: With this pay request, the project remains within budget by using the contingency. OPTION: 1) Approve ASI-12 2) Don’t approve ASI-12 RECOMMENDATION: “Motion to approve ASI-12 for the New City Center and Public Works Addition.” ATTACHMENTS: • Change Order-ASI-12 H+U Construction | 5555 West 78th Street | Suite A | Minneapolis MN 55439 Phone: 952 831 5408 | Email: info@hu-construction.com | Web: hu-construction.com M E M O R A N D U M DATE: June 23, 2022 TO: Kristina Handt, City of Lake Elmo FROM: Luke Nelson, Hoffmann + Uhlhorn Construction, Inc. SUBJECT: Lake Elmo City Center Architect’s Supplemental Instruction #12R – Motor Power Clarifications Attached for your review is the cost to perform the work outlined in ASI#12R. Contractor/Supplier WS Description Amount SCR 2300L Add EWH, ECUH, VRF Add $324.00 SCR 2300M Add EWH, ECUH, VRF Add $103,638.00 Vinco 2600L Add electrical for EWHs, EF & RH Louvers, & Revise disconnects Add $3,300.00 Vinco 2600M Add electrical for EWHs, EF & RH Louvers, & Revise disconnects Add $853.00 Subtotal 108,115.00$ Bond Cost (.96%)1,037.90$ Subtotal 109,152.90$ H+U Fee (.65%)709.49$ Total 109,862$ H+U Construction finds the pricing to be an accurate reflection of work completed. Please, review and provide comments and/or approval. Let me know if you have questions or need additional information. Attachments – Twenty-Four pages June 22, 2022 22099-1 H&U Construction Attention Luke Nelson Regarding Updated quotation on ASI 12R for the Lake Elmo Public Facilities EWH 6-12 +$8,464.50 Includes 10% mark-up VRF System Changes +$95,315.00 Includes 10% mark-up EWH 6-12 – Labor add +$1,620.00 12 hours at $135.00/hour ACOU 3, 5 & 8 – Labor deduct -$540.00 4 hours at $135.00/hour ControLogix deduct -$897.75 Includes 5% mark-up Total Add +$103,961.75 Breakdown: SCR Material Price Is: +$103,779.50 SCR Labor Price Is: +$1,080.00 ControLogix Material: -$141.75 ControLogix Labor: -$756.00 Total Price Is: +$103,961.75 SCR Jesse Widmer Jesse Widmer $8,674