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Shenandoah council approves $911,600 advance to replace City Hall chillers after failure
Summary
Council approved advance funding of $911,600 to replace two City Hall chillers after a recent failure left the building without redundancy; staff said expedited procurement through a purchasing co‑op could cut lead times and the full HVAC overhaul will be addressed at the August budget workshop.
Shenandoah, Texas — The City Council voted May 28 to advance funding of $911,600 to replace two aging chillers outside City Hall after staff reported a recent failure that reduced the building’s cooling capacity.
City staff told the council that a north chiller ‘‘literally blew up’’ last week and lost roughly half its operating capacity, creating near‑term risk that a second failure could leave City Hall without air conditioning. Staff said a quoted repair to replace a condenser coil would cost about $30,000 but would be wasteful because the entire HVAC system is scheduled for replacement within a year.
Joseph (City staff) presented the engineering estimate from LEAF Engineering and the recommended scope. ‘‘That dollar hit at $901,600,’’ he said, referring to equipment and installation costs, and added $10,000 for foundation and fence work to expand the chiller yard, putting the total advance request at $911,600. The estimate includes a five‑year warranty and a five‑year maintenance program for the new chillers.
Why it matters: Council and staff characterized the action as risk mitigation. Staff said replacing the chillers now would restore redundancy so the building could remain occupied and operational during hot months rather than depend on emergency rentals or temporary units. The chiller work is being proposed as a phase of a broader $2.5 million HVAC replacement project; staff said the $911,600 would be subtracted from the overall project cost if approved in the full budget.
Staff recommended using established purchasing co‑ops (BuyBoard, Omnia/HCAC) to avoid the time a sealed competitive bid would add. Staff said equipment lead times have varied in recent months; an estimate given at the meeting was about a 15‑week delivery window if ordered promptly.
Council discussion focused on contingency planning, funding and timing. Staff said available cash is roughly $3.1 million and the project could be split among funds that use the facility (general fund, CVV and water/sewer), with specific allocations to be finalized at an August budget workshop.
Councilman Raymaker moved to approve the advance funding; Councilman Robinson seconded the motion. The motion was approved by voice vote.
Next steps: Staff will return to the budget workshop in August with fund‑split options and a final procurement plan; ordering the equipment now would begin the estimated 15‑week lead time and require temporary cooling arrangements during removal and installation.
