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Whiting Letter <br /> Page 2 <br /> This cost increase may be offset by cost savings in reducing all the rooftop units to standard units with the <br /> exception of the Multi-Purpose Room with would remain with stainless steel components. This is a Value <br /> Engineering item that is currently being reviewed. <br /> Another option that could be considered at this time would be to upgrade the entire HVAC system. This <br /> would involve adding a hot water boiler and variable air boxes (same as above)with reheat coils to the <br /> current system. This would permit the system to run more efficiently and provide greater control to the areas. <br /> It is estimated that the cost for this system could be approximately$100,000. However,the energy saving <br /> payback could be recovered in a period of 5-10 years. <br /> With this system,the unit heaters located in the vestibules could be replaced with hot water coil heaters, <br /> eliminating the electric heater specified. <br /> If this option is selected, a supplemental service agreement to redesign the systems will need to be issued. The <br /> terms of the agreement will be based on hourly rates not to exceed approximately$8,000. <br /> Dunham and Associates will provide additional information to you on the systems,costs and paybacks. <br /> A decision on this matter needs to be made as soon as possible,since the ductwork is already being installed <br /> and the equipment must be ordered to avoid any delays to the project. <br /> Please note also,Value Engineering on the project to date has saved approximately$90,000,not including <br /> some of the proposals for the mechanical systems. <br /> Should you require any additional information or assistance,please contact me. <br /> Respectfully submitted, <br /> WAI/Continuum <br /> Dean A. Olsen,AIA <br /> cc: Dave Wolterstorff,WAUContinuum <br /> Steve Norberg,Dunham Associates <br /> Tim Dunnwald,Flannery Construction <br /> Mike Ulrich, City of Mounds View <br /> F:190634\CORRESP\WHITING 15 <br />