Press Releases

Birmingham City Councilors Seek More Answers on $62M Contract With TRANE

PRESS RELEASE                                                                        Wednesday, June 22, 2016

Contact: Brittany Sharp

Phone: 205-721-5369

brittany.sharp@birminghamal.gov

BIRMINGHAM, AL – “Who will be monitoring this project to ensure that the City is indeed seeing a cost saving difference? More important what measures will be put in place to show taxpayers the investment that they are gaining through a nearly $62 million contract that will last over 2 decades?” Those were some of the questions asked during the Committee of the Whole Meeting as Councilors discussed a contract proposal with TRANE a manufacturer of heating, ventilating and air conditioning (HVAC) systems and building management systems and controls.

“We came in to this meeting eager to learn more about this contract so that we could make the best decision on an issue that has so many long term effects for our residents,” Council President Johnathan Austin said. “Instead of gaining more clarity, we left with unanswered questions that let us know this project has not been fully vetted in the proper manner and we are not ready to move forward.”

Councilors stressed that a project this expensive, that will last over a 20-year period should without a doubt include minority businesses and in particular women who own small businesses and are often times left out.

“We would be derelict in our duty as Councilors of this City to let a $62 million dollar project take place without ensuring that local and minority owned businesses are included,” said Councilor Marcus Lundy who also chairs the Economic Development, Budget & Finance committee. “As representatives of the people it is our job to make sure that they are at the table on projects such as this, and I’m going to do all I can as a Councilor to ensure that they are not left out.”

Trane has presented two options for consideration: The first option will guarantee the City of Birmingham approximately $53 million in energy savings over a 20-year period and pay for all of the improvements recommended by Trane, Inc. All costs involved with these improvements and upgrades will be paid for through guaranteed energy savings. If the savings projected by Trane, Inc. are not realized, Trane, Inc. will have to pay the City of Birmingham the difference. The second option will include all of the items in Option One but will require a front-end payment by the City of Birmingham of $4 million to include other work needed as recommended by Trane, Inc. to achieve the energy savings. In addition to the $61,333,168 cost for the project, the contract also requires the city to pay the annual performance period services price, which costs $525,500.00 for the guarantee year with annual adjustment rate of 3%.

For more information, please contact Birmingham City Council Director of Public Information Brittany Sharp at (205) 721-5369 or brittany.sharp@birminghamal.gov.