Item Coversheet
May 14, 2019

Authorize the Administrator to sign the professional services agreement with Evergreen State Heat & AC for the replacement of HVAC units (SR 19-050; S. Frederick)

Administration / Shawn Frederick, Administrative Services Director 
Prior Board Review:
Administration Committee, 3/27/19, 4/24/19 


The Rucker Building, built in 1987, has a total of 47 cooling units and two gas make-up air re-heater units, which make up the primary HVAC. Additionally, the re-heaters are the primary source of fresh air for all cooling units that service the first and second floors. Commercial AC units typically have a lifespan of about 15 years, but many of the original units remain, including both make-up air re-heaters. There are four additional units that are dedicated to the IT server room.


Currently, 18 of the functioning units and one make-up air re-heater are original, having been in service for over 30 years. These units are past their normal life expectancy and have historically been replaced with newer units when they fail. The District’s 2019 budget was approved on December 7, 2019, including $493,000 allocated to capital projects, including HVAC unit replacement.


Staff began drafting the RFP (Exhibit A) in January based on direction from the Rucker Building Task Force, approved budget appropriations, and information learned from previous assessments of the HVAC system. Additionally, staff worked with Weed, Graafstra & Associates to obtain a legal review of the proposed RFP package.


At the conclusion of the RFP selection process, staff evaluated packages from three respondents on April 18, 2019, and selected Evergreen State Heat & AC as the winning proposal. Staff recommend Board approval of the proposed service agreement (Exhibit B) with Evergreen State Sheet Metal d.b.a. Evergreen Heat & AC to perform the requested scope of work in accordance with the 2019 Capital Budget. The proposed service agreement has a total cost of $372,526 and an initial term of 90 days, which can be extended in 30-day increments, if needed. At its April 24 meeting, the Administration Committee reviewed the agreement and moved to authorize the Administrator to sign it and forward to the full Board for action.


However, On May 1, 2019, Evergreen State Heat & AC returned to the Rucker Building with a representative From SNOPUD to evaluate any additional potential rebates for the project. During this evaluation an alternate list of replacement equipment (Exhibit C) was proposed. The alternate equipment has a total value of $358,247, plus permit and tax. There is a SNOPUD rebate of $34,418 for installation of the proposed alternate equipment, lowering the cost to $323,829. The advantages of this revised system include greater energy efficiency and improved climate control throughout the building. Additionally, the alternate proposal reduces the total number of HVAC units on the roof, potentially lowering annual HVAC maintenance costs.


Given the lower cost and added benefits of the alternate equipment, staff recommends approval of the proposed service agreement with the alternate equipment list as shown in Exhibit C.

Board Authority

Consistent with Resolution 11-36 (12/13/11) and SHD’s “Division of Responsibilities,” the Board of Health retains contract authority for non-legal services greater than $50,000/year or $100,000/total contract.

Recommended Motion

MOVE TO authorize the Administrator to sign the professional services agreement with Evergreen State Heat & AC for the replacement of HVAC units with the alternate equipment list as shown in Exhibit C.

Proposed Service Agreement
Alternate Equipment List