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A _ <br />CITY COUNCIL MEETING DATE: <br />APRIL 19, 2016 <br />TITLE <br />CONTRACT AWARD TO ONTARIO REFRIGERATION <br />SERVICES, INC. FOR CHILLER AND HEATING - <br />VENTILATION -AIR CONDITIONING EQUIPMENT <br />REPLACEMENT (SPEC. NO. 16 -054) <br />(STRATEGIC PLAN NO. 6, 1G & 2A) <br />(SURPLUS ALLOCATION FUNDING) <br />CITY MANA <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on V Reading <br />❑ Ordinance on 2nc Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />Authorize a one -time purchase and payment of purchase order to Ontario Refrigeration <br />Services, Inc. for the purchase and installation of chiller system and related heating-ventilation - <br />air conditioning equipment at Grand Central Arts Center in an amount not to exceed $435,320 <br />that includes a 10 percent contingency, subject to non - substantive changes approved by the City <br />Manager and City Attorney. <br />Project in accordance with the Council approved Surplus Allocation Plan as of October 20, 2015. <br />Department: <br />Project: <br />Category: <br />Total Funding: <br />Finance <br />Grand Central Arts Center— <br />Facilities /Assets <br />$450,000 <br />Chiller Replacement <br />FY 2015 -16 <br />DISCUSSION <br />The Grand Central Arts Center building is located in the downtown area and owned by the City of <br />Santa Ana, who is acting as the Successor Agency to the former Redevelopment Agency. The <br />mission of the Grand Central Art Center is to explore contemporary art and visual culture locally, <br />regionally, nationally, and internationally through socially engaged collaborations among artists, <br />students, and the community. A lease agreement was executed in 1995 to lease the building to <br />California State University, Fullerton (CSUF) for $1.00 per year for an initial term of ten years. <br />The lease was amended in 2004 to extend the lease term for 30 more years. Under the terms of <br />the existing lease the City, as landlord to the property, is responsible for the maintenance of the <br />facility. However, the nominal rent income generated from the leasing of the property is not <br />sufficient to offset maintenance - related expenditures. <br />22B -1 <br />