AGENDA CAPTION:
Title
Consider approval of Resolution 2026-82R, approving a contract with Trane U.S. Inc., through the BuyBoard Purchasing Cooperative Program, for the purchase, installation, and maintenance of a Trane Chiller for the Embassy Suites San Marcos Conference Center, in the amount of $368,432.00; authorizing the City Manager, or her designee, to execute the contract on behalf of the city; and declaring an effective date.
Body
Meeting date: May 19, 2026
Department: Public Works - Facilities
Amount & Source of Funding
Funds Required: $368,432.00
Account or Project Number (C = CIP funds): 12024226.52535
Funds Available: Yes, Contingent Approval of Ord. 2026-22
Account Name: Facility Maintenance Account - Hotel Occupancy Tax
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Background Information:
The purpose of this project is to replace one existing water-cooled chiller unit original to the building construction of 2008 which has exceeded the equipment’s life expectancy. The Embassy Suites San Marcos Conference Center has welcomed more than a million attendees. Replacement of this chiller will ensure continued operational safety and comfort. The project also includes a ten (10) year warranty for parts, labor, and refrigerant.
Replacement of the chiller and other components aligns with capital replacement goals for the Embassy Suites Conference Center. The new chiller, sized at 180 tons (Next Generation Refrigerant - 513a) will have capacity to match the chillers being replaced to serve the existing 78,800 sq. ft. Embassy Suites San Marcos Conference Center building. New Chiller includes a 10-Year warranty and integration into Trane Building Automation System (BAS). The existing chiller has exceeded its life expectancy, and its performance has declined and increased operational costs and maintenance costs.
While it still runs, its efficiency has dropped. Staff explored repairs to the existing chiller and the cost of the proposed repairs was equivalent to the cost of a new system. Furthermore, there was no guarantee that repairing the existing chiller would have been effective due to heavy corrosion of existing non-replaceable/repairable parts. In addition, the existing chiller utilizes outdated refrigerant R 22 which was phased out in January 2020 due to environmental restrictions. R 22 refrigerant is only available by recovered, recycled or reclaimed R-22. Project construction is anticipated to begin in October 2026 and is estimated to be completed in November 2026.
Benefits of this project:
• Improved occupant comfort
• Improved energy efficiency and cost savings
• Enhanced reliability and reduced down time for repair
• Integration with BAS allowing real time monitoring
As the City is authorized through Local Government Code, Section 271, to participate in cooperative purchasing programs, the City will contract with Trane U.S. Inc., through BuyBoard contract #720-23 for “HVAC Equipment, Supplies, and Installation of HVAC Equipment” for the purchase of a new chiller unit and a ten (10) year warranty for parts, labor, and refrigerant for a total cost of $368,432.00. Trane U.S. Inc., is located in Carrollton, Texas.
Council Committee, Board/Commission Action:
Funding sources contingent upon approval of Ordinance 2026-22, FY26 Budget Amendment
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Recommendation:
Staff recommends approval.