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Council approves $142,558 HVAC contract for Fire Station No. 1 with 15% contingency
Summary
Coos Bay approved a $142,558 bid from Apex Mechanical plus a 15% contingency (not to exceed $163,942) to repair Fire Station No. 1's HVAC system, funded largely by an Oregon Department of Energy grant and local reserve/maintenance funds.
Chief Anderson told the council that Fire Station No. 1's HVAC failed last November and a contractor estimated replacement costs. The city obtained a $100,000 grant from the Oregon Department of Energy to cover most of the work and solicited qualifications for the project because the cost exceeded $75,000.
Staff received a single bid from Apex Mechanical of Battle Ground, Washington, for $142,558; with a recommended 15% contingency the total not-to-exceed amount would be $163,942. Chief Anderson explained that the remaining local match would come from the general building maintenance fund and the equipment reserve fund, and the city would continue seeking other grant/incentive funding to offset local costs.
Councilors questioned the lack of multiple bids, the rationale for a 15% contingency and the prospect of change orders. Chief Anderson and staff explained procurement nuances, reference checks for the vendor and the standard practice of including contingency to cover unforeseen conditions or required electrical upgrades. Council voted to approve the contract and contingency.
Staff noted equipment reserve funds are sufficient for the award but warned that using reserves reduces available funds for future essential purchases. Staff also said they would pursue additional incentives and report back on any extra grant funding obtained.
