One of the two 20-ton condensing units of the Metropolis Theater’s large HVAC unit is no longer operational.  This HVAC unit is 23 years old, and a normal life expectancy for this unit is 20 years.  The cost to replace one condensing unit is about $45,000, but the HVAC unit would still consist of old blower, evaporator, another condenser, and heat exchange components which would have a very limited life.  This particular unit only serves parts of the Metropolis Theater's spaces and is not a common area expense for the building.  However, this unit does not impact the the ability to put on shows, as the theater space itself is served by another unit. The Theater is responsible for annual HVAC maintenance costs, but as the owner of the Theater the Village is responsible for this level of repair and replacement.  Public Works Staff is recommending that this HVAC unit be replaced.  In the meantime, Public Works is working with an HVAC vendor to determine if the remaining condensing unit can keep the Theater cool until a new HVAC can be installed.  There is currently a lengthy lead time for a new HVAC unit.    The following two bids to replace the 23-year-old HVAC unit were received by Public Works this week:

Paragon Mechanical $84,996

Atomatic $65,300

(Additional costs will include a crane to lift the new unit to the roof, and delivery charges)

Due to the existing hot weather conditions, Finance staff recommended that the Village Manager use the emergency purchase provisions outlined in the Village’s Purchasing Guidelines to contract with the low bidder, Atomatic for this work.

The Village has set aside funds in the Arts, Entertainment & Events Fund “Reserve for Replacement” for this type of expense.  As of December 31, 2021 the reserve amounted to $809,000.  Large future expenses for this aging building will include our proportional share of the roof and elevator replacement costs.

RECOMMENDATION:

It is recommended that the Village Board approve the emergency purchase of a new HVAC unit for the Metropolis Theater in the amount of $65,300, plus additional costs for crane rental and delivery charges.