Item No.: 8f_Supp
Meeting Date: January 12, 2021

World Trade Center West HVAC Replacement
Construction Contract Award Authorization

James E. Truhan, MCR    Senior Real Estate Manager
Rod Jackson             Capital Project Manager

Action Requested
Authority to award design
and construction contract
and to fund additional
soft costs.
Total requested: $555,000
Authorization will
increase funding from
$3,526,000 to $4,081,000.
2

Objective
Ensure the continued
reliable operation of
building mechanical
systems, while achieving
significant energy
savings and carbon
reductions.
3

Background
69,507 SF, 4 story, multi-tenant office building
System in continuous operation since 1998
At the end of its useful life
Commission authorized RFP in July
RFP issued in August; two proposals received
Lowest responsive bid: $2,798,000
$531,000 above Port Engineering estimate.

4

Current CIP Framework
PROJECT           FORECAST         ESTIMATED
DESCRIPTION                   STATUS            COMPLETION       BUDGET
1.  WTCW HVAC REPLACEMENT     PENDING DESIGN     Q4/2022              $ 4.081 M
2.  WTCW ROOF REPLACEMENT     BUSINESS PLAN       2023                  $   774 K



5

Project Goals
1. Achieve operational, energy savings and carbon
reduction goals
2. Mitigate Impacts to Tenants
3. Ensure Port diversity & equity policies inform
project actions
4. Employ Sustainable Means & Methods
6

Project Summary
1.  New primary HVAC components
+ secondary terminal units
+ kitchen HVAC & hood exhaust
2.  Efficiency/sustainability features:
Eliminate natural gas for heating
More energy efficient primary unit
Remotely accessible digital
controls
3.  Phased, off - hours construction
4.  Temporary HVAC
7

Project Approach
1. Facilitate small business opportunities
2. Manage project scope as a single, cohesive process
3. Mitigate construction phase business risk
4. Implement project risk management practices
5. Develop and maintain detailed project phasing plans

8

Project Milestones
1. Complete Design                     1st Quarter 2021
2. Construction Starts                   3rd Quarter 2021
3. Construction Complete               4th Quarter 2021


9

Thank You.

10

Appendix

11

Project Benefits
1.   Reduces lifetime CO2 emissions by 376 Metric Tons
2.   Eliminates natural gas energy source
3.   Replaces obsolete building control system
4.   Reduces maintenance costs
5.   Improves tenant comfort
6.   Limits construction related disruptions
7.   Balances sustainability benefits and cost
12

Alternatives to Requested Action
1.  Cancel Project
2.  Reduce Scope & Rebid
Delays completion by up to a year
Eliminates most sustainability measures
No assurance that rebid would achieve lower cost
3.  This Request (Additional Funding)

13

Procurement Method and Schedule
Building Engineering Systems (BES) Contract
Port furnishes performance specs; contractor designs and builds
Leverages lessons learned from other BES projects
Implements Women and Minority Business Enterprise goal of 6%
Provides opportunities for improved efficiency, quality, and innovation
Procurement Milestones
Q1/2021:              Award & Execute Contract
Q1/2021 - Q4/2021:     Design & Construction
Q1-Q3/2022:           Project Closeout
14

WTCW CIP Detail
CIP Budget                                   Project      Prior                                              5Y                                      2nd 5Y 10-Year Total
Division                       Sponsor       Category                              2020   2021   2022   2023   2024   2025           2026   2027   2028   2029   2030
Status                                     Description    Years                                               Total                                        Total   Total  Project

Business Plan     Portfolio                   WTCW Roof
EDD                         Mid-Cap               -    -    30   693   51    -    -   774   -    -    -    -    -    -   774   774
Approved    Management               Replacement

Design       Portfolio                  WTC HVAC
EDD                         Mid-Cap               81   231  2,100 1,114   -    -    -   3,214   -    -    -    -    -    -   3,214 3,526
Authorized    Management                 Replacement






15

Project Alternatives Considered     (Spring/2020)
Alternative 1      In-kind System Replacement
"1 for 1" component replacement throughout
Alternative 2      New State-of-the-Art System
High-efficiency dedicated outdoor air system, variable refrigerant flow heat
pump system and kitchen dedicated outside air system
Alternative 3      Hybrid approach
"1 for 1" roof top unit replacement, controls retrofit, variable air volume box
replacements and kitchen dedicated outside air system


16

Alternative Summary



17

17

Sustainability, Cost, Tenant Impact Comparison



18

PIER 69






PIER 66
PROJECT
LOCATION

World Trade Center West
and Vicinity