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Council approves lease and awards $625,800 HVAC contract for Brick Market after debate over costs

2530776 · February 12, 2025
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Summary

The council approved a lease with the Newport Historical Society for the Brick Market building and awarded a $625,800 contract to replace the building’s HVAC, prompting questions from councilors about the cost and a request for bid breakdowns.

The Newport City Council approved a lease agreement with the Newport Historical Society for the Brick Market building and awarded a $625,800 contract to replace the building’s heating, ventilation and air‑conditioning system, as well as make associated accessibility and building‑infrastructure improvements.

The lease: Councilors approved a lease that amortizes a portion of the HVAC cost through the Society’s rental payments; a clerical error discovered in the pre‑meeting materials led councilors to amend the record (striking “monthly” and replacing it with “yearly” in one whereas clause) before adopting the lease.

The HVAC contract: The council accepted the low bid in a reissued RFP process after a prior solicitation yielded no bids. Public Services Director Bill Riccio explained the second solicitation drew more bidders; he and other staff noted the installation work must be done in constrained historic building spaces, which adds cost and complexity.

Council debate: Several councilors pressed for a detailed cost breakdown before awarding the contract. Councilor David Carlin questioned why a commercial HVAC project would cost $625,800, asking for itemized costs for materials, labor, and the scope tied to accessibility upgrades. Supporters and administration staff said the project involves a geothermal‑style system serving museum‑quality artifact spaces and complex installation in tight crawlspaces, and noted that the city had pursued a competitive bidding process with two bids (the second was about 20% higher than the chosen bid).

Why it matters: The building houses historical artifacts and museum displays; the council heard that consistent climate control is critical for preservation. The contract also uses grant and nonprofit funds in combination with lease payments to support the installation; councilors asked for more detailed documentation of bid line items and schedule due to the dollar amount.

Next steps: The city will provide the council with a more detailed bid breakdown and schedule. The contractor will proceed under the awarded contract and the Historical Society and city staff will coordinate foundation, access and implementation details for the HVAC installation.